Bank of Japan Holds Interest Rates, Yen Temporarily Gains

Bank of Japan Governor Kazuo Ueda addresses the press today at 3:30 PM local time on interest rate decisions, after indications suggest a data-dependent, gradual approach.

Following the yen’s brief rise, markets absorbed the changes, reflecting limited immediate impact, underscoring ongoing moderate monetary adjustments expected to continue.

BOJ Holds Interest Rates, Yen Temporarily Gains

Governor Kazuo Ueda presided over the decision to maintain the 0.5% interest rate, mirroring the board’s consistency since early 2025. The yen appreciated post-announcement but quickly dropped, going below 156 against the USD. This interest rate decision reinforces the BOJ’s gradual normalization policy, gaining mixed investor responses. Members Naoki Tamura and Hajime Takata, supporting a higher rate of 0.75%, underscore ongoing BOJ debate. Market reactions saw the yen strengthen temporarily before stabilizing, confirming investor alignment with the BOJ’s course.

“The board voted 7-2 to hold rates at 0.5% on December 19, 2025, rejecting proposals for a rise to 0.75%.” — Kazuo Ueda, Governor, Bank of Japan

Limited Bitcoin Impact; Focus on Yen Volatility

Did you know? The BOJ’s rate policy since January 2025 reflects cautious steps discernible in previous rate movements like July 2024’s short-lived yen surge post-adjustment.

Bitcoin (BTC) remains unaffected by the BOJ’s actions. Trading at $87,223.77, with a market cap of $1.74 trillion, Bitcoin’s 24-hour change stands at +0.62%. Over the past 90 days, BTC experienced a decline of -24.50%. CoinMarketCap

The Coincu Research Team notes no immediate impact on cryptocurrencies from the BOJ’s rate hold. The focus remains on the yen’s volatility. Crypto markets await potential indirect effects from Japan’s economic adjustments. The BOJ’s cautious stance maintains a stable environment for cross-regional financial analyses.