Review: BoJ Keeps Rates Unchanged, But Signals Further Tightening Ahead

In this paper, we discuss:

• Why the BoJ kept interest rates unchanged while signalling that further policy tightening is likely;
• How rising inflation risks from yen weakness, AI-driven demand, and energy prices are strengthening the case for additional rate hikes;
• Why growing divisions within the BoJ’s Policy Board reflect an increasingly hawkish stance on monetary policy;
• How markets are bringing forward expectations for the next BoJ rate hike despite unchanged policy in July.

Download PDF: BOJ Review – July 2026