The headquarters of the Bank of Japan (BOJ) is seen beyond the cherry blossoms in Tokyo on March 20, 2023.
Kazuhiro Nogi | Afp | Getty Images
The Bank of Japan on Thursday kept its interest rate steady at 0.25%.
The decision comes a day after the US Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.
The yen weakened by 0.16% against the dollar after the rate decision, trading at 155.06.
The BOJ said in its statement that the decision to hold was an 8-1 split, with board member Naoki Tamura advocating for a 25-point increase.
The BOJ's decision was in line with a CNBC poll, which showed 13 out of 24 economists expected the BOJ to keep its key interest rate unchanged in December before raising the rate at its next meeting in January.
The survey was conducted between December 9-13, before the Fed indicated that there would be fewer rate cuts in 2025.
A note from Citi on December 13th forecast that the BOJ will increase rates three times in 2025, bringing the rate to 1%.
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