Bank of Japan governor Kazuo Ueda said the central bank will not "fall behind doanh" and may speed up rate rises after holding rates at 1% and a sharp yen jump following suspected intervention. He noted that underlying inflation is approaching the 2% price‑stability target and stressed the need to watch upside risks to inflation. Traders now see a roughly 40% chance of a quarter‑point rise in September, up from earlier figures, as investors worry the BoJ risks losing credibility if it does not act faster.

Ueda’s remarks were seen as hawkish by market observers. Mizuho strategist Masayuki Nakajima called the press conference "clearly hawkish," while Nomura strategist Yujiro Goto estimated a 8.45tn yen intervention to support the currency. The yen surged about 3% as markets believed Japan had stepped in, and the US Federal Reserve also conducted a rate check on the dollar‑yen pair.

The intervention may help keep the yen near ¥159 against the dollar, but lasting support will likely require higher interest‑rate expectations and continued US backing. Analysts note that further moves could come if the Fed raises rates, lifting the dollar and putting pressure on the yen again.