The Bank of Japan lifted its key short-term rate by 25bps to 1.0% in a 7-1 vote at its June meeting, marking the highest level since September 1995 and aligning with market expectations. The decision aimed at preventing the Iran war-driven energy shock from fueling broader inflation. The move also marked the central bank's first rate hike since December and its first regular policy meeting without the governor in attendance. Board member Asada Toichiro dissented, citing greater downside risks to production and employment than upside risks to prices. In its policy statement, the board said underlying inflation could accelerate above 2% target amid rising energy costs. It also noted that financial conditions would stay accommodative despite the rate hike, continuing to support economic activity. Policymakers stated that they will continue raising rates as warranted by economic, price, and financial developments, while closely monitoring the Middle East conflict's impact on the economy. source: Bank of Japan

The benchmark interest rate in Japan was last recorded at 1 percent. Interest Rate in Japan averaged 2.21 percent from 1972 until 2026, reaching an all time high of 9 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 June of 2026.

The benchmark interest rate in Japan was last recorded at 1 percent. Interest Rate in Japan is expected to be 1.00 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
2026-03-19 03:00 AM BoJ Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
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%
2026-06-23 11:50 PM BoJ Summary of Opinions
2026-07-31 03:00 AM BoJ Quarterly Outlook Report
2026-07-31 03:00 AM BoJ Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 664363.00 663253.30 JPY Billion May 2026
Deposit Interest Rate 0.33 0.33 percent May 2026
Interest Rate 1.00 0.75 percent Jun 2026
Bank Lending YoY 5.70 5.40 percent May 2026
Loans to Private Sector 591368.50 590733.80 JPY Billion May 2026
Monetary Base 5757634.00 5829256.00 JPY Billion May 2026
Monetary Base YoY -12.20 -11.30 percent May 2026
Money Supply M0 110181.30 110562.90 JPY Billion May 2026
Money Supply M1 1102935.10 1103467.50 JPY Billion May 2026
Money Supply M2 1298093.20 1295619.00 JPY Billion May 2026
Money Supply M3 1642404.50 1640907.90 JPY Billion May 2026
Purchases of Government Bonds 2497.50 2569.90 JPY Billion May 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 0.75 9.00 -0.10 1972 - 2026 percent Daily

News Stream
Japan Raises Policy Rate to Highest Since 1995
The Bank of Japan lifted its key short-term rate by 25bps to 1.0% in a 7-1 vote at its June meeting, marking the highest level since September 1995 and aligning with market expectations. The decision aimed at preventing the Iran war-driven energy shock from fueling broader inflation. The move also marked the central bank's first rate hike since December and its first regular policy meeting without the governor in attendance. Board member Asada Toichiro dissented, citing greater downside risks to production and employment than upside risks to prices. In its policy statement, the board said underlying inflation could accelerate above 2% target amid rising energy costs. It also noted that financial conditions would stay accommodative despite the rate hike, continuing to support economic activity. Policymakers stated that they will continue raising rates as warranted by economic, price, and financial developments, while closely monitoring the Middle East conflict's impact on the economy.
2026-06-16
BoJ Maintains Tightening Bias Amid Middle East Risks
Bank of Japan Deputy Governor Ryozo Himino said the central bank remains committed to further interest-rate hikes, though the timing and pace will depend on how the Middle East conflict affects Japan’s economy and inflation. Speaking before a parliamentary committee on Tuesday, Himino stressed that Japan’s real interest rates remain “at extremely low levels,” adding that the BoJ will “continue to raise the policy rate and adjust the degree of monetary accommodation in accordance with economic, price, and financial developments.” However, he avoided signaling when the next rate increase could occur, noting that policymakers are closely monitoring the economic and price impact of geopolitical tensions in the Middle East. Himino also said the central bank aims to maintain market credibility through appropriate monetary policy management and the stable achievement of its inflation target.
2026-05-26
BoJ Remains on Track for Further Rate Hikes
Policymakers at the Bank of Japan stayed cautious about the uncertain Middle East situation at their April meeting, though several members still saw scope for near-term interest rate hikes. One official said there was “no need to take hasty action,” but argued the central bank should raise rates soon unless there are clear signs of an economic slowdown. Another member said “it is quite possible” the board could hike rates from the next meeting onward, even if uncertainty surrounding the Gulf conflict persists, while a third warned the central bank may need to accelerate tightening “without hesitation” if upside inflation risks intensify. Some members stressed that while downside risks to growth and upside risks to prices could both rise, policy should focus on preventing inflation from overshooting and hurting the economy later on. At the April 27–28 meeting, the BoJ kept its policy rate unchanged at 0.75% but raised inflation forecasts due to soaring oil prices linked to the Iran war.
2026-05-12