The U.S. Federal Reserve's dovish shift will likely give the Bank of Japan some respite in its battle to tame a weak yen, but could complicate its efforts to raise interest rates if the two central banks' diverging policy paths keep markets jittery.
At an annual symposium in Jackson Hole, Wyoming, Fed Chair Jerome Powell said on Friday "the time has come" to cut rates as rising risks to the job market left no room for further weakness, offering an explicit endorsement of an imminent policy easing.
The remarks came hours after BOJ Gov. Kazuo Ueda told parliament that while the BOJ will keep an eye out on the fallout from unstable markets, it will continue to hike rates if inflation remains on track to durably hit its 2% target.