BoJ’s Summary of Opinions: Members see prices and growth developing in line with outlook

Lallalit Srijandorn FXStreet

Bank of Japan (BoJ) published the Summary of Opinions from its July monetary policy meeting on July 30 and 31, with the key findings noted below.

Key quotes

Several members view economic activity and prices developing in line with the BoJ outlook.

Some see room to raise "significantly low" policy rate, citing negative real rates at 25-year lows.

Opinions divided on timing - some want more data, others ready to move now.

BoJ member expects small hike to have no tightening effect

Member urges timely rate hike to avoid the need for rapid hikes

Members eye on neutral rate of "at least around 1%" as medium-term goal.

Plans to reduce JGB purchases seen as promoting market function, not tightening.

Careful monitoring of JGB market needed as BoJ cuts purchases.

Ongoing debate on the sustainability of inflation/wage growth cycle.

Market reaction

Following the BoJ’s Summary of Opinions, the USD/JPY pair is losing 0.45% on the day to trade at 146.10, as of writing.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

EUR/USD treads water near 1.1800 ahead of ECB rate decision

EUR/USD is keeping its range at around 1.1800 in the European trading hours on Thursday. The pair awaits the European Central Bank interest rate decision for fresh impetus after the Eurozone inflation declined well below the central bank's 2% target.

GBP/USD stays weak toward 1.3600 on BoE's 'Super Thursday'

GBP/USD holds its losses for the second successive session, directed toward 1.3600 in European trading on Thursday. The pair weakens as the Pound Sterling comes under pressure ahead of the Bank of England’s interest rate decision due later in the day.

Gold recovers major part of intraday losses to sub-$4,800 levels; down a little on firmer USD

Gold rebounds swiftly following the Asian session fall to sub-$4,800 levels and climbs back above the $4,900 mark in the last hour, though the upside potential seems limited. Wednesday's softer US ADP report pointed to labor market weakness and strengthened the case for interest rate cuts by the Federal Reserve, lending support to the non-yielding yellow metal.

BTC steadies as bears shift focus toward $70,000

Bitcoin price remains under pressure so far this week, with the Crypto King slipping below $73,000 on Tuesday for the first time since November 2024. The price dip in BTC was fueled as the news came in late Tuesday that the US military shot down an Iranian drone that “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea.

European Central Bank seen holding interest rates, reinforcing its wait-and-see stance

The European Central Bank is holding its two-day meeting and will announce its monetary policy decision on Thursday. The ECB is widely expected to keep interest rates on hold for the fifth consecutive meeting, leaving the main refinancing operations, the marginal lending facility, and the deposit facility at 2.15%, 2.4%, and 2%, respectively.

Top Crypto Losers: Zcash, Stacks, BNB drop further as Bitcoin weakens

Zcash, Stacks, and BNB (formerly Binance Coin) are among the biggest losers over the last 24 hours as Bitcoin approaches $72,000. The correction is driven by multiple factors, including massive, steady outflows from institutions and large-wallet investors, broader-market risk-off sentiment, and the delay in the Digital Asset Clarity Act.