FX.co ★ BoJ Holds Rates

At its July 2026 meeting, the Bank of Japan left its short-term policy rate unchanged at 1.0%, maintaining borrowing costs at their highest level since September 1995 after a 25-basis-point increase in June. The widely anticipated decision passed by an 8–1 vote, with board member Hajime Takata dissenting in favor of an additional rate hike. Policymakers pointed to upside risks to inflation, citing demand-driven price pressures associated with the conflict in the Middle East.