The Bank of Japan (BOJ) stated in its July 2026 "Outlook for Economic Activity and Prices" report that it would continue to raise interest rates and adjust the degree of monetary easing in response to changes in economic activity, prices, and financial conditions. The central bank will consider the timing and pace of adjustments while reviewing the likelihood of the baseline scenario being realized and its risks, emphasizing the critical importance of stabilizing core CPI inflation around 2%.