The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its October meeting and kept the target for the 10-year Japanese government bond yield at around zero percent, as widely expected. The central bank also revised down inflation forecasts again, saying that the momentum toward achieving the price stability target of 2 percent is not sufficiently firm despite years of massive monetary easing. Interest Rate in Japan averaged 2.81 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.
Interest Rate in Japan is expected to be -0.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Japan to stand at 0.00 in 12 months time. In the long-term, the Japan Interest Rate is projected to trend around 0.10 percent in 2020, according to our econometric models.