LONDON/SINGAPORE—The yen fell to a new 15-year low against the euro on Friday after the Bank of Japan (BOJ) kept ultra-low interest rates and forecast that inflation will slow later this year in contrast with the European Central Bank’s (ECB) rate hike on Thursday.
As widely expected, the BOJ maintained its -0.1 percent short-term interest rate target and a 0 percent cap on the 10-year bond yield set under its yield curve control (YCC) policy.
“We expect inflation to moderate, but it’s true the pace of decline is somewhat slow. But we’re still in the early stages of the moderation,” BOJ Governor Kazuo Ueda said….