BoJ Expected to Raise 2026 Growth Forecast, Maintain Rates and Hawkish Stance in July
| Pair | Now | Since publish |
|---|---|---|
| USDJPY | — | — |
- BoJ to raise 2026 growth forecast in July report.
- Policy rates expected to remain unchanged at July meeting.
- Central bank to maintain focus on inflation risks and future tightening.
The Bank of Japan (BoJ) is widely expected to revise its economic growth forecast for fiscal 2026 upwards in its quarterly report scheduled for July. Concurrently, the central bank is anticipated to keep its policy interest rates unchanged at its upcoming July meeting, following its recent hike to the highest level since 1995. Sources indicate the BoJ will maintain its focus on the risk of inflation exceeding its target, pledging to continue its tightening path. Any potential downgrade to near-term inflation projections is likely to be attributed to factors such as falling oil prices, rather than signaling a shift towards a softer monetary policy, with the central bank reportedly monitoring upside risks from a weak Japanese Yen, steady wage growth, and AI-driven demand. The Japanese Yen (JPY) showed no immediate significant reaction to these reports, with the USD/JPY pair observed slightly lower.