In U.S.-Japan monetary policy, the U.S. FOMC left interest rates unchanged while upgrading its economic assessment to "strong" and explicitly stating that anti-inflation measures would continue. The Bank of Japan decided to leave rates unchanged, indicated adjustments to monetary easing and an acceleration in ETF sales, and revised its 2027 inflation forecast upward in its Outlook for Economic Activity and Prices.
The U.S. FOMC left interest rates unchanged while raising its economic assessment from "solid" to "strong," and indicated a policy of bringing inflation back to its target without delay. At the same time, it retained language stating that it would continue gathering further information, and the decision passed without causing major market disruption.
As expected, the Bank of Japan left interest rates unchanged and noted that the inflation rate was broadly consistent with its target. It decided to adjust the degree of monetary easing and accelerate the pace of ETF sales, while revising its inflation forecast for fiscal 2027 upward in its Outlook for Economic Activity and Prices.
The yen was soft, while the New Zealand dollar at times stood out for its decline against the U.S. dollar among major currencies. The currency market response, including moves in European currencies, was limited, and the euro-yen exchange rate avoided falling below ¥175.