BOJ's Ueda removes rates pledge, signals policy review

The Bank of Japan kept its main stimulus measures unchanged while scrapping its guidance on future interest rate levels. BOJ Governor Kazuo Ueda signaled a more flexible stance on policy, though the central bank remains committed to "patiently" maintain ultra-loose policy. The removal of a pledge to keep interest rates at "current or lower levels" gives the BOJ more room for future policy tweaks.   The central bank also called for a long-term review of its policies and issued new price forecasts showing inflation below 2% in the fiscal year ending March 2026. Governor Ueda stated that while trend inflation is gradually rising, it will take some time to achieve the inflation target. The yen weakened and Japanese bonds and stocks rose on expectations that the BOJ's new governor will maintain the monetary stimulus policies of his dovish predecessor, Haruhiko Kuroda.