BOJ expected to hold rates steady, focus shifts to Ueda's press conference

Published Jul 30, 11:18 AM UTC

The Bank of Japan is expected to keep interest rates unchanged at its July 31 meeting, with all 52 economists surveyed by Bloomberg forecasting a hold at 1%. Attention shifts to Governor Kazuo Ueda's press conference for signals on the timing of the next rate hike. Markets are pricing in a 74% chance of a hike by October, up from 50% after the June meeting. The yen's slide to its weakest level against the dollar since 1986 has added to inflation pressures. Some BOJ officials believe underlying inflation is approaching the 2% target, opening the door to faster rate normalization. The board is expected to raise this fiscal year's economic growth forecast in updated quarterly projections. Political developments, including Prime Minister Sanae Takaichi's planned sales tax cut on food, add uncertainty.