Bank of Japan Holds Rate at 1%

The Bank of Japan kept its policy rate unchanged at 1 percent, holding steady after increasing it to a 31-year high in June.

Governor Kazuo Ueda cut the inflation forecast and signalled a cautious stance amid global uncertainty, vowing not to 'fall behind the curve' while emphasising the need to monitor the economic impact of the US-Iran conflict.

The decision came amid speculation that Tokyo had intervened to support the yen, which has weakened to historic lows.

The central bank slightly increased its economic growth outlook for the year.