The yen fell broadly following the BOJ's announcement, hitting a fresh 15-year low of 153.97 per euro and sliding 0.25% at 140.66 to the dollar.
In a statement announcing the policy decision, the BOJ said it expects core consumer inflation to moderate toward the middle of the current fiscal year ending in March 2024 due to falling fuel and global commodity prices. However, he said an upward revision to its inflation forecasts alone would not automatically trigger a policy shift, as what was important was "not just the median projection but the degree of certainty about the estimates."
The yen's recent decline could also heighten calls from politicians for the BOJ to tweak YCC, as it squeezes households and retailers by pushing up raw material import costs.