The Bank of Japan (BOJ) has decided to keep its interest rates steady at 0.75%, despite rising concerns over oil prices impacting inflation. The decision was made with a 6-3 vote, indicating some internal pressure for a rate hike to 1.0%. The BOJ also revised its fiscal year 2026 core inflation forecast to 2.8%, up from 1.9%, while downgrading its growth forecast to 0.5%. Governor Kazuo Ueda highlighted the potential for rising crude oil costs to broadly increase prices across the economy, noting the risk of "second-round effects" where temporary price spikes could influence wages and long-term inflation trends. Some board members described the situation as Japan's "fifth major oil shock," given the country's heavy reliance on oil imports. The BOJ's decision to hold rates keeps the yen weak, supporting the yen-funded carry trade, which benefits assets like Bitcoin. The dovish stance removes a macro risk that could have disrupted Bitcoin's rally, with the cryptocurrency trading above $74,000. Investors are advised to monitor oil prices closely as the next BOJ meeting approaches in June.