BOJ Signals Gradual Normalization With Rate Hike as Yen Reacts; Kuroda to Speak at 3:30 PM Press Conference

In a closely watched briefing, Bank of Japan Governor Haruhiko Kuroda is scheduled to hold a press conference around 3:30 p.m. local time to outline the considerations behind the latest decision and the prospective path for policy rates. Markets remain focused on a gradual, data-dependent approach to rate hikes, prioritizing a measured normalization over aggressive tightening.

Following the decision, the yen touched higher against the U.S. dollar before retreating, slipping below the 156 per dollar level and trading about 0.3% weaker on the day. The price action suggests that investors have digested the move, aligning with the BOJ’s stance that the current adjustment is part of a slow, gradual normalization of policy rather than a fundamental shift in accommodation.