The Yen is weakening after the Bank of Japan (BOJ) announced it would continue its current easing policy. This contrasts with the global trend of other central banks raising interest rates to tackle rising inflation. The BOJ’s commitment to its ultra-loose monetary policy is putting downward pressure on the Yen in the foreign exchange market.

The central bank cited concerns about the fragility of the Japanese economy as the primary reason for maintaining its current stance. Policymakers believe that premature tightening could derail the recovery.

The decision has been met with mixed reactions. Some analysts argue that the BOJ is falling behind the curve and risking higher inflation in the future. Others support the BOJ’s cautious approach, emphasizing the need to support economic growth.