BOJ Holds Interest Rate, Yen Surges Amid Japan-US Intervention

The Bank of Japan (BOJ) kept its policy interest rate unchanged at 1.0% in its Monetary Policy Meeting on July 31.

This decision was made after a coordinated intervention with the US, where the Japanese government and BOJ bought yen and sold dollars.

The move resulted in a temporary surge of the yen exchange rate to around 157 yen per dollar in the New York foreign exchange market.

According to Mr. Paul Brattby, founder and CEO of 'xBratAI', a trading signal platform utilizing artificial intelligence (AI), the BOJ's decision to keep interest rates unchanged is perceived as dovish by the market.

The BOJ also revised its core CPI (Consumer Price Index) outlook for fiscal year 2026 downward from 2.8% to 2.5%, indicating no rush to raise interest rates.