TOKYO — On Friday, July 31st, 2026, the Bank of Japan (BOJ) announced it would keep its benchmark interest rate unchanged, a move widely expected by market observers. Despite ongoing challenges including a prolonged conflict in Iran and a weakening yen, the central bank lowered its inflation forecast for the current fiscal year.

The decision comes as crude oil prices continue to rise, complicating the BOJ's efforts to manage inflation and economic stability. The bank's cautious stance reflects the complex economic environment in Asia and beyond.

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