Bank of Japan keeps interest rate at 0.75%, while a stronger Japanese yen puts pressure on Bitcoin at $76,500

Bitcoin was temporarily around $76,500 as of April 29, extending the downward trend. The U.S. dollar versus the Japanese yen fell nearly 0.5% to 158.95. According to the Bank of Japan’s monetary policy decision released on April 28, the committee voted 6 to 3 to keep the policy rate unchanged at 0.75%. Three members voted in favor of an immediate rate hike that day, and traders immediately adjusted the probability of a rate hike on June 16 to 74%.

Bank of Japan Decision on April 28: Voting Results and Inflation Forecast Adjustments

According to the Bank of Japan’s official announcement, this policy meeting also adjusted the economic forecasts for the current fiscal year. The core inflation forecast was raised from the prior level to 2.8%, while the economic growth forecast was lowered from 1% to 0.5%.

According to a Bloomberg report, part of the reason the central bank raised its inflation forecast is attributed to global energy prices moving higher due to disruptions in energy shipping through the Strait of Hormuz, further intensifying inflation pressure in Japan, an economy reliant on energy imports. Bloomberg also reported that the 74% market pricing probability for a June rate hike aligns with the general expectations of most BOJ observers before the decision was released.

Strait of Hormuz Developments and Oil Market Updates

According to reports from public media, Iran has proposed a plan to reopen the Strait of Hormuz, with conditions including the U.S. lifting its maritime blockade against Iran and stopping military actions, but the plan did not involve any nuclear program. When asked, a White House spokesperson, Morgan Ortagus, said the U.S. does not hold negotiations through the media and has already laid out its position to Iran.

The United Arab Emirates (UAE) announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, causing oil prices to rise. At present, the Strait of Hormuz remains basically under blockade.

Market Data: Japanese Yen, Bitcoin, and Fed Policy Expectations

According to TradingView data, after the Bank of Japan’s decision was released, USD/JPY fell nearly 0.5% to 158.95. On the bitFlyer exchange, BTC/JPY fell 0.6% to 12.28 million yen; Bitcoin, priced in U.S. dollars, was temporarily around $76,500 as of April 29.

Regarding the current state of Japanese yen carry trades, LondonCryptoClub founder, citing data, said that as of February 2026, Japan’s holdings of U.S. Treasuries increased by $14 billion from the previous month to $1.24 trillion, the highest level since February 2022, and the 13th consecutive month of net purchases among the past 14 months.

Concerning Fed policy developments, in an April 29 report, FXStreet analyst Joshua Gibson noted that the Federal Reserve is scheduled to release its policy decision this Wednesday (April 30). The market generally expects the federal funds rate to remain unchanged in the 3.50% to 3.75% range. Gibson’s report also said that Chair Jerome Powell’s remarks on the persistence of inflation, and how the Fed plans to respond to shocks to energy costs, will be key points of market observation at this round’s post-meeting press conference. In addition to the rate decision released this week, the central banks releasing policy decisions also include the European Central Bank (ECB), the Bank of England, and the Bank of Canada.

Frequently Asked Questions

What was the result of the Bank of Japan’s April 28 interest rate decision?

According to the Bank of Japan’s official announcement, the committee voted 6 to 3 to keep the policy rate unchanged at 0.75%. Three members voted in favor of an immediate rate hike on the day, which was the largest vote margin since President Kazuo Ueda took office.

What is the market pricing probability for a June rate hike? And what is the data source?

According to a Bloomberg report, after the Bank of Japan’s decision was released, traders adjusted the market pricing probability for a rate hike on June 16 to 74%, consistent with the prevailing expectations of most BOJ observers before the decision.

What market data were seen for Bitcoin and the Japanese yen after the Bank of Japan’s decision?

According to TradingView data, USD/JPY fell nearly 0.5% to 158.95; BTC/JPY on the bitFlyer exchange fell 0.6% to 12.28 million yen; Bitcoin priced in U.S. dollars was temporarily around $76,500 as of April 29.