BOJ Holds Rates as Suspected Intervention Sends Yen Surging

The Bank of Japan is widely expected to keep its policy rate unchanged at 1.00% after raising borrowing costs in June, but a suspected intervention by Japanese authorities has sent the Japanese Yen sharply higher ahead of the policy decision.

Investors will look to Governor Kazuo Ueda for clues on whether another rate hike could reinforce the Japanese Yen's rebound and potentially impact USD/JPY.

The BoJ is expected to publish its quarterly Outlook Report, including updated projections for economic growth and inflation, which may revise growth forecasts higher due to resilient domestic activity and strong demand linked to artificial intelligence investment.