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BOJ holds rates at 1%, warns of underlying inflation exceeding 2% target

The 8-1 decision keeps borrowing costs at 1% as board members warn weak yen-driven price pressures could push inflation above target.

  • The Bank of Japan held its policy rate steady at 1% with an 8-1 vote while warning that underlying inflation in Japan could exceed its 2% target.
  • BOJ Governor Kazuo Ueda emphasized monitoring upside inflation risks and indicated that future policy debates will consider these risks, signaling possible rate hikes.
  • Japan's yen weakened significantly but rallied briefly after Tokyo intervened by selling dollars and buying yen, with U.S. authorities conducting a 'rate check' as a precursor to intervention.
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Bitcoin steady as Japan holds rates at 1%, keeping the yen carry trade alive

The Bank of Japan left its benchmark at 1% and Governor Ueda's hawkish signals landed softly, since markets had already priced an October hike. Bitcoin held near $64,000.

·New York, United States
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Reuters broke the news in London, United Kingdom on Thursday, July 30, 2026.
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