Japan Interest Rate  1972-2018 | Data | Chart | Calendar | Forecast | News

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its April 2018 meeting, as expected. Policymakers also kept its 10-year government bond yield target around zero percent but dropped their target date for reaching 2 percent inflation. Interest Rate in Japan averaged 2.84 percent from 1972 until 2018, reaching an all time high of 9 percent in December of 1973 and a record low of -0.10 percent in January of 2016.

Japan Interest Rate
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BoJ Holds Policy Steady, Removes Inflation Target Date

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its April 2018 meeting, as expected. Policymakers also kept its target for 10-year government bond yield around zero percent but dropped their target date for reaching 2 percent inflation.

With regard to the amount of JGBs to be purchased, the Bank will conduct buying at more or less the current pace -- an annual pace of increase of about 80 trillion yen.
The BoJ also determined by an unanimous vote to purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will increase at an annual paces of about JPY 6.0 trillion and about JPY 90 billion, respectively. As for CP and corporate bonds, the Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively.  

Regarding prices, the central bank previously had mentioned it expected inflation to hit 2 percent around fiscal 2019.

Meanwhile in a quarterly review of the central bank's forecasts, the BOJ said the momentum toward achieving the price stability target of 2 percent is maintained as the output gap is expected to continue improving and medium-to-long-term inflation expectations are projected to rise gradually; however. the momentum is not yet suffficiently firm, and developments in prices continue to warrant careful attention. For fiscal 2018, core CPI is projected to rise by 1.3 percent, down slightly from an earlier forecast of 1.4 percent. At the same time, the economy is expected to expand by 1.6 percent, stronger than a 1.4 percent expansion in the previous estimate, mainly reflecting solid growth in overseas economies.

Excerpts from the Outlook for Economic Activity and Prices:

Japan's economy is likely to continue its moderate expansion. In fiscal 2018, domestic demand is likely to follow an uptrend, with a virtuous cycle from income to spending being maintained in both corporate and household sectors on the back of highly accommodative financial conditions and fiscal spending through the government's large stimulus measures. Business fixed investment is likely to continue increasing amid accommodative financial conditions, led mainly by investment intended for domestic capacity expansion in line with the economic expansion, Olympic Games-related investment, and labor-saving investment to address the labor shortage. Private consumption is also expected to follow a moderate increasing trend as emplyment and income situation continues to improve. Public investment is expected to remain at a relatively high level, mainly reflecting the supplementary budget for fiscal 2017 and Olympic Games-related demand, although the positive effects resulting from the government's past stimulus measures are likely to diminish moderately. Exports are expected to continue their moderate increasing trend on the back of the firm growth in overseas economies.

With regard to the risk balance, upside and downside risks to economic activity are generally balanced in fiscal 2018, but skewed to the downside for fiscal 2019 onward.

Bank of Japan l Rida Husna | rida@tradingeconomics.com
4/27/2018 5:30:31 AM

Calendar GMT Actual Previous Consensus TEForecast
2018-01-23 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-03-09 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-04-27 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-06-15 03:00 AM BoJ Interest Rate Decision -0.1% -0.1%
2018-07-31 03:00 AM BoJ Interest Rate Decision -0.1%
2018-07-31 05:00 AM BoJ Quarterly Outlook Report

Japan Money Last Previous Highest Lowest Unit
Interest Rate -0.10 -0.10 9.00 -0.10 percent [+]
Interbank Rate -0.03 -0.02 8.50 -0.08 percent [+]
Money Supply M0 99125.40 99005.60 99257.00 2130.10 JPY Billion [+]
Money Supply M1 755343.50 741745.40 755343.50 3921.00 JPY Billion [+]
Money Supply M2 1002505.00 990849.00 1002505.00 8404.00 JPY Billion [+]
Money Supply M3 1327549.50 1323587.90 1327549.50 1008505.00 JPY Billion [+]
Central Bank Balance Sheet 535051.00 528520.00 535051.00 4864.50 JPY Billion [+]
Foreign Exchange Reserves 1256018.00 1268287.00 1306668.00 455.00 USD Million [+]
Loans to Private Sector 456623.40 454740.40 536555.80 375948.90 JPY Billion [+]
Deposit Interest Rate 0.30 0.40 5.50 0.04 percent [+]
Foreign Stock Investment 126.30 -0.30 1568.80 -2161.60 JPY Billion [+]
Foreign Bond Investment 827.00 -363.70 2549.70 -3072.10 JPY Billion [+]
Loan Growth 2.10 2.00 3.60 -5.00 percent [+]
Private Debt to GDP 229.40 227.00 291.90 227.00 percent [+]

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. This page provides - Japan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Japan Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
-0.10 -0.10 9.00 -0.10 1972 - 2018 percent Daily

interest rate by Country
Country Last
Turkey 8.00 Apr/18
Mexico 7.50 May/18
Russia 7.25 Apr/18
Brazil 6.50 May/18
India 6.00 Apr/18
Indonesia 4.50 May/18
China 4.35 Apr/18
United States 1.75 May/18
Australia 1.50 May/18
South Korea 1.50 Apr/18
Canada 1.25 Apr/18
United Kingdom 0.50 May/18
Euro Area 0.00 Apr/18
France 0.00 Apr/18
Germany 0.00 Apr/18
Italy 0.00 Apr/18
Netherlands 0.00 Apr/18
Spain 0.00 Apr/18
Japan -0.10 Apr/18
Switzerland -0.75 Apr/18