BlockBeats News, July 31st, the Bank of Japan continued to warn that the core inflation rate may exceed the 2% target and pledged to continue raising borrowing costs based on economic and price trends. The bank also adjusted its assessment of the balance of risks to economic growth, stating that the risks are evenly balanced rather than skewed to the downside.

This indicates that the drag from the Middle East conflict has been less severe than initially feared by the authorities, as the global demand for artificial intelligence has acted as a cushion, mitigating the impact. Overall, the Bank of Japan's stance suggests that a continued weakening of the yen could exacerbate inflationary pressures, leading to expectations of another interest rate adjustment.

Investors are increasing their expectations that the Bank of Japan will raise interest rates before October, and Bank of Japan Governor Haruhiko Kuroda, in a press conference held this afternoon, may provide clues supporting this view.