The Bank of Japan (BoJ) unanimously maintained its key short-term interest rate at around 0.25% during its October meeting, keeping it at the highest level since 2008 and matching market estimates. Thursday's decision came amid shifting political lansdscape following Japan's election and ahead of the US presidential election. Meanwhile, Governor Kazuo Ueda has highlighted concerns about the increasingly uncertain global economic outlook, stating that the central bank has time to analyze risk factors after implementing rate hikes in March and July. The policy board remains committed to further rate increases if economic and price data align with its forecasts. In a quarterly outlook, the BoJ held its forecast that core inflation to reach 2.5% in FY 2024, with inflation expected to be around 1.9% for both FY 2025 and FY 2026. Regarding the GDP, the central bank retained its 2024 growth forecast at 0.6%. Additionally, it forecasts growth of 1.1% for FY 2025 and 1.0% for FY 2026. source: Bank of Japan

The benchmark interest rate in Japan was last recorded at 0.25 percent. Interest Rate in Japan averaged 2.26 percent from 1972 until 2024, reaching an all time high of 9.00 percent in December of 1973 and a record low of -0.10 percent in January of 2016. This page provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Japan Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on November of 2024.

The benchmark interest rate in Japan was last recorded at 0.25 percent. Interest Rate in Japan is expected to be 0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan Interest Rate is projected to trend around 0.40 percent in 2025 and 0.60 percent in 2026, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-07-31 04:00 AM BoJ Interest Rate Decision 0.25% 0.1% 0.1% 0.1%
2024-09-20 03:00 AM BoJ Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2024-10-31 03:00 AM BoJ Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2024-11-10 11:50 PM BoJ Summary of Opinions
2024-12-19 03:00 AM BoJ Interest Rate Decision 0.25%
2024-12-26 11:50 PM BoJ Summary of Opinions


Related Last Previous Unit Reference
Central Bank Balance Sheet 752846.80 764811.50 JPY Billion Sep 2024
Deposit Interest Rate 0.12 0.11 percent Oct 2024
BoJ Summary of Opinions 0.25 0.25 percent Oct 2024
Bank Lending YoY 2.70 3.00 percent Sep 2024
Loans to Private Sector 546617.20 546407.90 JPY Billion Sep 2024
Money Supply M0 112664.20 113184.80 JPY Billion Sep 2024
Money Supply M1 1092281.60 1096200.80 JPY Billion Sep 2024
Money Supply M2 1252023.50 1254847.50 JPY Billion Sep 2024
Money Supply M3 1603971.40 1607469.40 JPY Billion Sep 2024
Purchases of Government Bonds 5340.00 5263.00 JPY Billion Sep 2024

Japan Interest Rate
In Japan, interest rates are set by the Bank of Japan's Policy Board in its Monetary Policy Meetings. The BoJ's official interest rate is the discount rate. Monetary Policy Meetings produce a guideline for money market operations in inter-meeting periods and this guideline is written in terms of a target for the uncollateralized overnight call rate.
Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 9.00 -0.10 1972 - 2024 percent Daily


News Stream
Bank of Japan Holds Rates Amid Political Uncertainty
The Bank of Japan (BoJ) unanimously maintained its key short-term interest rate at around 0.25% during its October meeting, keeping it at the highest level since 2008 and matching market estimates. Thursday's decision came amid shifting political lansdscape following Japan's election and ahead of the US presidential election. Meanwhile, Governor Kazuo Ueda has highlighted concerns about the increasingly uncertain global economic outlook, stating that the central bank has time to analyze risk factors after implementing rate hikes in March and July. The policy board remains committed to further rate increases if economic and price data align with its forecasts. In a quarterly outlook, the BoJ held its forecast that core inflation to reach 2.5% in FY 2024, with inflation expected to be around 1.9% for both FY 2025 and FY 2026. Regarding the GDP, the central bank retained its 2024 growth forecast at 0.6%. Additionally, it forecasts growth of 1.1% for FY 2025 and 1.0% for FY 2026.
2024-10-31
BoJ Should Raise Interest Rates Gradually: Board Member Adachi
It is appropriate for the Bank of Japan to go through a process of gradual interest rate increase, board member Seiji Adachi said in a speech. He added that the central bank should avoid hiking prematurely, amid uncertainties over the global economic outlook and next year's domestic wage developments. Meanwhile, new Prime Minister Shigeru Ishiba has indicated the country is not ready for an additional rate increase. Recently, Governor Kazuo Ueda stated that policymakers have enough time to carefully assess factors such as financial and capital markets at home and abroad after delivering rate hikes in March and July.
2024-10-16
BoJ Has Time to Assess Impact of Two Rate Hikes
Underlying inflation in Japan is likely to continue rising and will be at a level generally consistent with the price stability target of 2% during the second half of fiscal 2026, central bank governor Kazuo Ueda said in a speech. He added this projection is based on the assumption that the changes in firms’ wage- and price-setting behavior will take hold and that wage increases will continue into the next FY and beyond. Meanwhile, the macroeconomic conditions that have helped wage increases, such as labor shortages and favorable corporate profits, remain in place. Regarding monetary policy, since Japan has remained under a low interest rate environment for an extended period, the board needs to examine how economic output and prices will respond to interest rate hikes in March and July. The governor noted that policymakers have enough time to carefully assess factors such as financial and capital markets at home and abroad, and the global economic situation, particularly in the US.
2024-09-24