BOJ's Split Vote on Rates Marks Most Hawkish Divide of Ueda Era

The Bank of Japan left its key interest rate unchanged in a split vote that boosted the chance of a June hike. But the weak yen saw only a brief respite as Governor Kazuo Ueda cast doubt on the economy’s outlook.

The BOJ held its policy rate steady at 0.75% at the end of its two-day policy meeting Tuesday, according to a statement. The 6-3 vote represents the biggest divide under Ueda’s governorship, suggesting swelling pressure to normalize policy.