The BANK OF JAPAN left policy rates unchanged on Friday; one board member voted
to hike. In its Outlook Report the bank trimmed its inflation forecast for the
current fiscal year. The decision came as Middle East tensions rose, leaving
upside inflation risk given Japan’s oil import dependence. Authorities
intervened in FX markets on Thursday, reported as yen-buying; US officials also
carried out a currency review. Markets are focused on governor UEDA’s afternoon
press conference for guidance on future policy direction and any comment on the
intervention.