BoJ holds rates amid talk of yen intervention
By Frank Prenesti
Date: Friday 31 Jul 2026
(Sharecast News) - The Bank of Japan on Friday left its benchmark interest rate unchanged as expected, keeping borrowing costs at 1% after last month's hike, amid heightened speculation the government intervened to support the yen.
Board member Hajime Takata dissented, arguing for a further rate rise to address potential upward price pressures. The move came after the yen abruptly strengthened on Thursday night, jumping from around 162.80 to the 157 level against the dollar in roughly an hour - a shift analysts said strongly suggested action by Japanese financial authorities.
Finance Minister Satsuki Katayama declined to confirm whether intervention had taken place. By midday Friday, the currency was trading near 160.70.
BoJ governor Kazuo Ueda expressed concerns about the upside risks to prices and suggested speeding up the bank's rate-hike cycle.
"If we judge that financial conditions are too accommodative, it is entirely possible that we could accelerate the pace of interest rate hikes," Ueda told a news conference Friday.
Reporting by Frank Prenesti for Sharecast.com
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