After core inflation, the Bank of Japan will keep rates at 2.8 percent.

Key receivers

The BOJ kept rates at 0.25% following a 2.8% increase in CPI. The US Federal Reserve will cut BOJ policy by 50 basis points.

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The Bank of Japan (BoJ) left interest rates unchanged at 0.25% on Friday, hours before the central bank's meeting in August, according to government data.

The decision was widely expected amid lingering fears that rising prices could negatively impact consumer spending. Japan's central bank is wary of raising rates further, as it could dampen economic activity and dampen demand-driven inflation.

Following the BOJ's latest rate hike to 0.25% in July, volatility in both stock and currency markets increased. The central bank aims to assess the impact of this previous hike before making further adjustments, as sudden changes could add further volatility to the market.

The BoJ's latest move comes against a backdrop of the US central bank's monetary policies to keep interest rates on hold.

The US Federal Reserve cut interest rates by 50 basis points on Wednesday, the first cut since the outbreak of the coronavirus pandemic four years ago.

Following the Fed's recent rate cut decision, both Bitcoin (BTC) and the stock market performed positively.

Indexes rose across the board. In one of its best days of the year, the S&P 500 rose 1.7%, beating its last all-time high in July. The Dow Jones industrial average rocketed 1.3% to break a record on Monday, while the Nasdaq composite gained 2.5%.

After the Fed's decision, Bitcoin (BTC) jumped to nearly $61,000, then suddenly returned to around $60,500.

However, the Bulls seem to be late to the party. Over the past 24 hours, BTC has risen 6% to $63,000. The Fed's move boosted the overall crypto market, with the overall market cap rising 2% in response.

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