- The EUR/JPY fights after the publication of the decision on the interest rate of the Bank of Japan on Thursday.
- The BOJ decided to keep its interest rates without changes in July, as expected.
- The operators expect the data on the German consumer price index and the harmonized index of consumer prices that will be published later in the day.
The EUR/JPY continues its loss streak for the fourth consecutive day, quoting around 169.90 during the Asian session on Thursday. The Currency Crossing loses ground after the publication of the decision on the interest rate of the Bank of Japan (BOJ). Operators will probably observe the highest eurozone economy, the consumer price index (CPI) in Germany and the data of the harmonized consumer price index (IAPC) that will be published on Thursday.
The members of the Boj Board maintained the objective of the short-term interest rate in the range of 0.40%- 0.50% on Thursday, as expected. The Japanese Central Bank extended the pause in the fourth consecutive meeting after increasing the interest rate by 25 basic points (PBS) to 0.50% in January.
The BOJ’s quarterly perspective report indicated that underlying inflation will probably stagnate due to the deceleration of economic growth, but it is expected to be gradually accelerated later. Uncertainty remains high regarding the developments of commercial policy and its possible impact on the economy. The bank will continue to increase the policy rate if economic conditions and prices evolve according to their forecasts.
The Eurozone economy grew a modest 0.1% in the second quarter, decelerating drastically from 0.6% in the first quarter, but still exceeding the expectations of any growth. The operators express caution before the recent commercial agreement between the United States (USA) and the European Union (EU), which disproportionately benefits the US market expectations for the markets for the ECB rates have been delayed, with the markets now assigning a 90% probability to a 25PBs cut by March 2026.
Economic indicator
BOJ interest rates
He Bank of Japan Set the interbank interest rate. This rate affects a range of interest rates set by commercial banks, construction societies and other institutions towards their own savers and borrowers. It also affects the price of financial assets, such as bonds, actions and exchange rates, which affect the consumer and the demand for businesses in a variety of forms. If the Bank of Japan has a firm perspective with respect to the Japanese economy and increases the current interest rate, this is upward to the YEN. Instead, a slight perspective that leads to the bank to reduce or maintain current types will be bassist for the YEN.
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Last publication:
Jul 31, 2025 02:57
Frequency:
Irregular
Current:
0.5%
Dear:
0.5%
Previous:
0.5%
Fountain:
Bank of Japan
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
