The yen weakened to as much as 156.49 per dollar after the release, after trading around 155.80 before the data came out. Last week the BOJ’s board voted unanimously to lift the policy rate to 0.75%, the highest level since 1995. In its latest policy statement, the bank said inflation is expected to meet the bank’s target in the latter half of its projection period through fiscal year 2027. The deceleration was partly driven by fading food inflation, and the trend will likely continue going ahead. “If in June or July underlying inflation looks reasonably firm, then a rate hike could come under consideration.”

Source: The Edge Markets December 26, 2025 03:58 UTC