In a move closely watched by global markets, the Bank of Japan decided on Friday to maintain its benchmark interest rate at around 0.25%.

What Happened: The decision aligns with predictions from a Reuters poll, where economists anticipated another rate hike by the end of the year.

Following the announcement, the yen remained nearly unchanged at 142.52 against the dollar. The Nikkei 225 index, which had risen by 2%, maintained its level, according to data from Benzinga Pro.

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Why It Matters: Last month, BOJ Governor Kazuo Ueda indicated that the central bank would continue to raise interest rates if the economy and inflation met projections.

This stance contrasts with other global central banks, such as the U.S. Federal Reserve, which recently cut interest rates by 50 basis points.

The BOJ had previously maintained near-zero interest rates to stimulate inflation and economic growth. However, it raised the key rates to 0.25% in July, aiming to achieve a 2% inflation target.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote