BlockBeats News, July 31st, the Bank of Japan on Friday kept its policy rate at 1%, in line with expectations. The central bank had raised the benchmark rate to the highest level since 1995 last month.

BOJ Policy Board Member Kataoka descended by objection to support a 25-basis-point rate hike. Kataoka believes that the situation has entered a new phase and the Bank of Japan needs to take a flexible approach to address the upward risk in prices and changes in the overseas financial environment.

The Bank of Japan stated that it will continue to raise rates based on economic and price developments and financial conditions. Underlying inflation is close to 2%, the financial environment remains accommodative, and the significant downside risks to economic activity and significant upward risks to prices have somewhat diminished. In the latest economic outlook, the Bank of Japan lowered its core CPI forecast for the fiscal year 2026 from 2.8% to 2.5% and raised the GDP growth forecast for fiscal year 2026 from 0.5% to 0.6%. (Kabu.com)