BOJ Rate Decision on July 31 Puts Yen Carry Trades in Focus

The Bank of Japan's interest rate decision on July 31, 2026, is being closely watched by global markets as the yen remains a crucial funding currency. A rise in Japanese interest rates or a sudden appreciation of the yen could force leveraged investors to reduce their positions in global equities, bonds, and crypto assets.

The BOJ's Policy Board will meet on July 30 and 31, with the policy statement expected around midday in Tokyo on July 31. Governor Kazuo Ueda's press conference is scheduled for 3:30 p.m. Japan time, or 2:30 p.m. Singapore time.

As of July 29, 2026, the consensus is for the BOJ to keep its policy rate at 1.0% while assessing the effects of its June increase. However, the yen is trading near multi-decade lows, and investors are focusing on whether the BOJ signals another rate increase in September or before the end of the year.