The BANK OF JAPAN left policy rates unchanged on Friday; one board member voted to hike. In its Outlook Report the bank trimmed its inflation forecast for the current fiscal year. The decision came as Middle East tensions rose, leaving upside inflati

2026-07-31

The BANK OF JAPAN left policy rates unchanged on Friday; one board member voted to hike. In its Outlook Report the bank trimmed its inflation forecast for the current fiscal year. The decision came as Middle East tensions rose, leaving upside inflation risk given Japan’s oil import dependence. Authorities intervened in FX markets on Thursday, reported as yen-buying; US officials also carried out a currency review. Markets are focused on governor UEDA’s afternoon press conference for guidance on future policy direction and any comment on the intervention.