BoJ Summary of Opinions: Member indicates readiness to adjust degree of easing if outlook is realized

Lallalit Srijandorn FXStreet

The Bank of Japan (BoJ) published the Summary of Opinions from its September monetary policy meeting on September 19 and 20, with the key findings noted below.

Key quotes

Japan's economy has been recovering moderately, with steady price rises.

Economic activity and prices are generally on track, with moderate growth expected.

Concerns exist regarding the impact of U.S. economic uncertainties on Japan, including exchange rates and corporate profits.

The Bank will maintain its current accommodative stance but will adjust if economic conditions improve.

There are no immediate plans for further rate hikes, emphasizing stability and careful communication.

Market reaction

Following the BoJ’s Summary of Opinions, the USD/JPY pair is gaining 0.08% on the day to trade at 143.75, as of writing.

Bank of Japan FAQs

What is the Bank of Japan?

The Bank of Japan (BoJ) is the Japanese central bank, which sets monetary policy in the country. Its mandate is to issue banknotes and carry out currency and monetary control to ensure price stability, which means an inflation target of around 2%.

What has been the Bank of Japan’s policy?

The Bank of Japan embarked in an ultra-loose monetary policy in 2013 in order to stimulate the economy and fuel inflation amid a low-inflationary environment. The bank’s policy is based on Quantitative and Qualitative Easing (QQE), or printing notes to buy assets such as government or corporate bonds to provide liquidity. In 2016, the bank doubled down on its strategy and further loosened policy by first introducing negative interest rates and then directly controlling the yield of its 10-year government bonds. In March 2024, the BoJ lifted interest rates, effectively retreating from the ultra-loose monetary policy stance.

How do Bank of Japan’s decisions influence the Japanese Yen?

The Bank’s massive stimulus caused the Yen to depreciate against its main currency peers. This process exacerbated in 2022 and 2023 due to an increasing policy divergence between the Bank of Japan and other main central banks, which opted to increase interest rates sharply to fight decades-high levels of inflation. The BoJ’s policy led to a widening differential with other currencies, dragging down the value of the Yen. This trend partly reversed in 2024, when the BoJ decided to abandon its ultra-loose policy stance.

Why did the Bank of Japan decide to start unwinding its ultra-loose policy?

A weaker Yen and the spike in global energy prices led to an increase in Japanese inflation, which exceeded the BoJ’s 2% target. The prospect of rising salaries in the country – a key element fuelling inflation – also contributed to the move.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

EUR/USD turns negative toward 1.1500 ahead of ECB rate decision

EUR/USD has come under fresh selling pressure and heads toward 1.1500 in Thursday's European trading. Rising bets that the European Central Bank will deliver a rate hike after its June policy meeting could limit the Euro's retreat amid renewed US Dollar demand. The focus now remains on the ECB's updated projections and Lagarde's words.

GBP/USD falls to 1.3350, as traders brace for US PPI data

GBP/USD is falling back to near 1.3350 in the European session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, as traders brace for the US PPI data.

Gold sticks to modest recovery gains near $4,100; looks to US PPI

Gold holds mild recovery gains near the $4,100 region, managing to hold above the lowest level since November 2025. A softer Core US Consumer Price Index eased concerns about a runaway inflation spiral, weighing on the US Dollar and prompting some intraday short-covering around the precious metal. All eyes are now on the US PPI report.

Pi Network: Recovery at risk with 16 million PI tokens ready for unlock

Pi Network edges higher after three days of consecutive losses earlier this week, extending the prevailing downtrend since late April. The scheduled unlocking of 16 million PI tokens on Thursday could add pressure to the intraday recovery. Technically, PI remains under bearish pressure.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.