Investors react to BOJ's decision to hold rates

July 31 : The Bank of Japan kept its interest rates steady on Friday, while reiterating its willingness to raise borrowing costs further if inflation risks increase. At the end of its two-day policy meeting, the central bank voted 8-1 to keep its short-term policy rate at 1 per cent. Board member Hajime Takata dissented, arguing for a 25-basis-point increase to 1.25 per cent. COMMENTSMASATO KOIKE, SENIOR ECONOMIST, SOMPO INSTITUTE PLUS, TOKYO: "I got the impression that the statement was somewhat hawkish. In particular, the section on prices and the 2 per cent inflation target stood out. "The wording suggested that inflation is 'approaching 2 per cent', and it also emphasized the importance of confirming whether inflation will become firmly anchored at 2 per cent. Given that inflation appe