The BoJ maintains its benchmark rate at the highest level since 1995 while revising growth and inflation projections.
The Bank of Japan left its short-term interest rate steady at 1.0% during its July 2026 policy meeting, matching market expectations. The decision follows a 25-basis-point hike in June, marking the highest borrowing costs in nearly three decades.
The central bank also updated its economic outlook, tweaking growth and inflation forecasts for the fiscal year. Analysts had anticipated minor adjustments amid persistent inflationary pressures and a mixed economic recovery.
Markets showed limited reaction to the announcement, as the rate hold was widely priced in. The yen remained stable against major currencies, reflecting investor focus on future policy signals.