The Bank of Japan (BoJ) maintains its current monetary policy in its meeting on the 20th, keeping the short-term interest rate target at around 0.25%. This decision comes after the central bank's modest rate hike in July, which marked its first increase in 17 years.

In a post-meeting press conference, BoJ Governor Kazuo Ueda stated that there is "ample time" to consider future rate hikes. This remark triggered a sell-off in the yen, with the currency briefly touching the 143 yen per dollar level as markets interpreted it as a sign that additional rate increases might be delayed.

The central bank's decision to hold rates steady appears to be influenced by several factors. Following the July rate hike, which was partly motivated by concerns over rapid yen depreciation and its impact on inflation, the currency market has shown signs of stabilization. The yen's recovery from its low of 161 per dollar has somewhat alleviated worries about import-driven inflation.

Moreover, the BoJ seems to be taking a cautious approach in light of recent market volatility. After the July rate hike, the Tokyo stock market experienced its largest single-day drop in history on August 5th. Bank officials had previously indicated they would refrain from further rate increases amidst unstable financial markets.

Despite maintaining current policies, the BoJ has not abandoned its stance on potential future rate hikes. The central bank remains committed to achieving its 2% inflation target and continues to monitor the "virtuous cycle" between wages and prices.

As of 4 PM Japan time, the yen was trading at 142.98-99 to the dollar, down 48 sen from the previous day. Against the euro, it weakened by 97 sen to 159.79-83 yen per euro.

The BOJ's decision and Governor Ueda's comments suggest a balanced approach, weighing economic indicators against market stability as Japan navigates its path towards normalized monetary policy.