BOJ Holds Steady Amid Surprise Intervention

The Bank of Japan (BOJ) held its policy rate steady at 1% on July 31, 2026, as expected by all economists surveyed after a hike last month. This move comes just hours after officials waded back into the currency market with apparent help from the US. The BOJ's benchmark rate has not seen such a swift reversal in decades.

The decision was unanimous among the nine board members, except for Hajime Takata, who called for another increase to take the benchmark rate higher than its current 1% level. This would have been the first back-to-back raise since the BOJ's history began.