Bank of Japan (BOJ) At a press conference following the July 31 monetary policy meeting, Bank of Japan Governor Kazuo Ueda stated that if financial conditions become excessively loose, the central bank may accelerate the pace of interest rate hikes. He emphasized the upside risks to inflation, noting that underlying inflation is already close to the 2% target and that the impact of exchange rates on inflation is becoming more pronounced, requiring closer monitoring.This statement followed the Bank of Japan (BOJ)’s decision to keep the benchmark interest rate unchanged at 1%, though there was a split within the Policy Board, with some members advocating for consecutive rate hikes.