The Bank of Japan kept its short-term policy rate unchanged at 1.0% at its July 2026 meeting, leaving borrowing costs at their highest level since September 1995 after raising the rate by 25bps in June, as the board warned that underlying inflation could exceed the 2% target. The widely expected decision passed by an 8-1 vote, with board member Hajime Takata dissenting and calling for a hike to 1.25%. The board judged risks to economic activity to be broadly balanced, while noting the need to monitor the impact of global AI-related demand and yen movements. In its quarterly outlook, the BoJ cut its FY2026 inflation forecast to 2.5% from 2.8%, reflecting government steps to ease households' summer energy costs. Meantime, policymakers slightly raised their FY2026 GDP growth projection to 0.6% from 0.5%, amid resilient domestic demand and continued support measures. For FY2027, the BoJ lifted its inflation forecast to 2.4% from 2.3%, while raising its GDP growth outlook to 0.8% from 0.7%. source: Bank of Japan

The benchmark interest rate in Japan was last recorded at 1 percent. Interest Rate in Japan averaged 2.20 percent from 1972 until 2026, 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 September of 2026.

The benchmark interest rate in Japan was last recorded at 1 percent. Interest Rate in Japan is expected to be 1.25 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 1.00 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-04-28 03:00 AM BoJ Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
2026-06-16 03:00 AM BoJ Interest Rate Decision 1% 0.75% 1.0% 1.0%
2026-07-31 03:00 AM BoJ Interest Rate Decision 1% 1% 1% 1%
2026-09-18 03:00 AM BoJ Interest Rate Decision 1% 1.25% 1.25%
2026-09-30 11:50 PM BoJ Summary of Opinions
2026-10-30 03:00 AM BoJ Quarterly Outlook Report


Related Last Previous Unit Reference
Central Bank Balance Sheet 644662.00 644295.70 JPY Billion Aug 2026
Deposit Interest Rate 0.40 0.33 percent Aug 2026
Interest Rate 1.00 1.00 percent Aug 2026
Bank Lending YoY 5.40 5.40 percent Aug 2026
Loans to Private Sector 600305.50 598921.90 JPY Billion Aug 2026
Monetary Base 5430070.00 5549259.00 JPY Billion Aug 2026
Monetary Base YoY -15.70 -13.80 percent Aug 2026
Money Supply M0 109898.00 109915.10 JPY Billion Aug 2026
Money Supply M1 1087467.80 1091486.30 JPY Billion Aug 2026
Money Supply M2 1296389.50 1296639.40 JPY Billion Aug 2026
Money Supply M3 1639987.80 1640869.80 JPY Billion Aug 2026
Purchases of Government Bonds 2321.20 2338.60 JPY Billion Aug 2026


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
1.00 1.00 9.00 -0.10 1972 - 2026 percent Daily

News Stream
BoJ Eyes Further Rate Hikes Amid Persistent Cost Pressures
Bank of Japan board member Kazuyuki Masu said the central bank will continue raising its policy rate and adjust monetary accommodation as underlying inflation nears 2%. Speaking in Fukui on Thursday, he noted the pace of hikes will hinge on progress toward the July baseline scenario and risks from crude oil, AI-driven demand and FX moves. Masu warned that higher fuel and chemical costs tied to the Iran situation could prove more than temporary by lifting distribution and other expenses. Food prices also face pressure from rising domestic logistics, shipping fees and imported fertilizer, raising concern over persistent inflation. He added that recent rate hikes have not curbed firms’ funding demand, which has instead grown, though risks of overheating in corporate investment remain. Households overall hold net asset surpluses, but younger borrowers face heavier housing-loan burdens despite stronger wage growth.
2026-09-10
BoJ Takata Urges Nimble Approach to Rate Hikes
Bank of Japan (BoJ) board member Hajime Takata urged a flexible, data-dependent approach to rate hikes, warning that inflation is edging closer to the 2% target and risks of overheating are rising. Addressing business leaders in Hokkaido, he described 2026 as a “regime change,” with policy no longer tied to a fixed pace but adjusting to domestic and global conditions. Takata, among the central bank’s more hawkish voices, had proposed lifting the benchmark rate to 1.25% at the July meeting, but the idea was rejected in an 8-1 vote, leaving the rate at 1%. Meanwhile, Governor Kazuo Ueda stressed that policymakers will continue raising rates as financial conditions remain accommodative, while weighing inflation risks against the cumulative impact of past moves. He said the board will scrutinise whether economic and price trends stay aligned with its baseline outlook and debate the risks at its next policy meeting.
2026-09-02
BoJ Himino Highlights Need for Timely Rate Hikes
Bank of Japan remains alert to upside inflation risks and will discuss the need to raise interest rates as markets increasingly expect another hike, Deputy Governor Ryozo Himino said in a speech Thursday. “It is important to stabilise underlying inflation at a level around 2%,” he said, warning that inflation above the 2% price stability target could hurt the economy and warrants greater attention than in the past. Himino added that the central bank will assess risks to its economic outlook, including the Middle East conflict, foreign-exchange movements and stronger AI-related demand. He also argued that “raising rates in a timely manner” could prevent inflation from accelerating and avoid the need for abrupt hikes later, ultimately benefiting smaller firms, mortgage borrowers and public finances. He stressed that the timing and pace of policy adjustment will depend on the likelihood of the baseline economic and price outlook being realised and the risks surrounding it.
2026-08-27