Investing.com -- The Bank of Japan is set to hold its benchmark interest rate steady at 1% at its policy meeting on July 30–31, according to reporting from Nikkei, which cited sources familiar with the matter. Bank of America highlighted that its composite indicator, modeled on BOJ methodology, shows medium- to long-term inflation expectations have now crossed the 2% threshold. Consequently, both brokerages pinpoint the central bank's October monetary policy meeting as the most probable timeline for an additional quarter-point increase. This persistent currency differential keeps intense pressure on the yen carry trade, where global investors borrow low-yielding yen to fund positions in higher-yielding international assets. Related articlesBank of Japan set to hold rates at 1% as inflation expectations rise - NikkeiIs the pound's rally masking underlying UK economic weakness?