BOJ keeps interest rates steady, signals further rate hikes

The Bank of Japan kept interest rates steady on Friday, but revised up its inflation forecast and stressed anew its readiness to continue pushing up borrowing costs to forestall mounting inflation risks.

At a two-day meeting that ended on Friday, the central bank decided to maintain its short-term policy target at 1.25% by an 8-1 vote. Board member Hajime Takata dissented to the decision, instead calling for a 1.5% hike.

Governor Kazuo Ueda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.