Forex
BoJ Holds Rates as Inflation Forecast Slips
The Bank of Japan (BoJ) maintained its short-term policy rate at 1.0% in its July meeting, marking the highest level since September 1995 after a 25-basis-point hike in June.
The decision was unanimous among the majority of policymakers, but board member Hajime Takata dissented, arguing for further rate hikes to combat inflationary pressures linked to the Middle East conflict.
The BoJ's quarterly outlook revealed a downward revision of its core inflation forecast for FY2026 to 2.5% from 2.8%, reflecting waning crude oil price impacts.