BOJ Defies Market Bets for Policy Tweaks, Yen Tumbles

BOJ Defies Market Bets for Policy Tweaks, Yen Tumbles
Visitors at the headquarters of Bank of Japan in Tokyo on Jan. 17, 2023. Issei Kato/Reuters
|Updated:

TOKYO—The Bank of Japan on Wednesday maintained ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus program amid mounting inflationary pressure.

The surprise decision sent the yen skidding against other currencies and bond yields tumbling the most in decades, as investors unwound bets they made anticipating the central bank would overhaul its yield control policy.