Wide gaps in interest rates could bring back the yen carry trade, in which investors borrow in Japan and deploy the funds in higher-yielding markets.

The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.

Explore why the USD/JPY pair has rallied this week after the BoJ and the Federal Reserve interest rate decision

The Federal Reserve revealed its rhythm for 2025: just two rate cuts. In a recent interview, Mary Daly, president of the Federal Reserve Bank of San Francisco, said they are “very comfortable” with the decision.

The Bank of Japan kept interest rates unchanged on Thursday and its governor offered few clues on how soon it could push up borrowing costs, sending the yen and bond yields tumbling on fresh doubts over the near-term chances of a rate hike.

The Bank of England wrapped up a big year of central bank rate cuts by keeping rates steady on Thursday December 19 - a day after the Federal Reserve eased policy but suggested it would be more cautious in 2025.

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The Bank of Japan on Thursday held its benchmark interest rate steady at 0.25%. The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points ...

The yen weakened against the dollar Thursday after the Bank of Japan kept borrowing costs unchanged, extending a retreat for the currency that came after the Federal Reserve forecast fewer rate cuts.

The Bank of England wrapped up a big year of central bank rate cuts by keeping rates steady on Thursday, a day after the Federal Reserve eased policy but suggested it would be more cautious in 2025. The Swiss National Bank,

European markets opened higher after a mixed trading session in Asia ahead of the Federal Reserve’s final rate decision of this year.