[Bank of Japan Likely to Hold Steady, Assessing Impact of June Rate Hike] Jin10 Data, July 28 – The Bank of Japan is expected to hold off on further action this week as it evaluates the impact of its recent decision to raise the policy rate to the highest level in 30 years. Markets will closely monitor the bank's latest economic and inflation forecasts for clues regarding the timing and pace of future moves. It is widely anticipated that the Bank of Japan will maintain its 1% policy rate unchanged when it concludes its two-day meeting on Friday. At its previous meeting in June, the bank raised rates to a 31-year high, citing concerns that rising oil prices could push the underlying inflation rate above the 2% target. Despite ongoing inflation worries, the Bank of Japan remains committed to tightening policy further. Markets have already priced in expectations for at least one more rate hike before the end of the year. Although uncertainty in the Middle East has caused crude oil prices to rise again, Bank of Japan policymakers believe the risk of a sharp economic downturn in Japan is relatively low. They expect the Japanese government to ensure sufficient energy supplies by bypassing shipping routes through the Strait of Hormuz. Additionally, the weak yen continues to be one of the main factors influencing Japan's price trends. It not only exacerbates the burden of already high energy prices but may also further increase import costs. Barclays economists have noted that if the yen experiences a significant depreciation and Japanese authorities' currency interventions fail to curb the decline, the Bank of Japan may be forced to raise rates as early as September.