Insiders say the Bank of Japan may consider raising its economic growth forecast for the fiscal year to March next year (currently +0.5%) at this month's policy meeting while keeping the policy rate unchanged. The bank has already lifted rates to their highest level since 1995. Officials cited sustained global AI‑related demand as supporting Japan's economic resilience and are weighing revising the assessment that economic risks are "tilted to the downside" to reflect growing confidence Japan ca

2026-07-17

Insiders say the Bank of Japan may consider raising its economic growth forecast for the fiscal year to March next year (currently +0.5%) at this month's policy meeting while keeping the policy rate unchanged. The bank has already lifted rates to their highest level since 1995. Officials cited sustained global AI‑related demand as supporting Japan's economic resilience and are weighing revising the assessment that economic risks are "tilted to the downside" to reflect growing confidence Japan can avoid a severe recession. Insiders said final decisions will follow assessment of all available data up to the 11th hour.