The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its December meeting, even after the Federal Reserve raised rates for the fourth time this year. Policymakers also kept the target for the 10-year government bond yield at around zero percent and maintained their upbeat view on domestic economy despite slowing growth in China, uncertainty from Sino-US trade dispute and volatile financial markets. Interest Rate in Japan averaged 2.80 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.

Japan Interest Rate
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
2018-07-31 04:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-09-19 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-10-31 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2018-12-20 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2019-01-23 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1%
2019-01-23 03:00 AM BoJ Quarterly Outlook Report
2019-01-27 11:50 PM BoJ Monetary Policy Meeting Minutes



BoJ Holds Monetary Policy Steady After US Rate Hike

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its December meeting, even after the Federal Reserve raised rates for the fourth time this year. Policymakers also kept the target for the 10-year government bond yield at around zero percent and maintained their upbeat view on domestic economy despite slowing growth in China, uncertainty from Sino-US trade dispute and volatile financial markets.

With regard to the amount of JGBs to be purchased, the bank will conduct purchases in a flexible manner so that their amount outstanding will increase at an annual pace of about 80 trillion yen. 

The BoJ also determined by an unanimous vote to purchase ETFs and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will increase at an annual paces of about 6 trillion yen and about 90 billion yen, respectively. With a view to lowering risk premia of asset prices in an appropriate manner, the bank may increase or decrease the amount of purchases depending on market conditions. 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.  

Excerpts from the Statement on Monetary Policy:

Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating. Overseas economies have continued to grow firmly on the whole. In this situation, exports have been on an increasing trend. On the domestic demand side, business fixed investment has continued on an increasing trend, with corporate profits and business sentiment staying at a favorable level. Private consumption has been increasing moderately, albeit with fluctuations, against the background of steady improvement in the employment and income situation. Meanwhile, housing investment has been more or less flat. Public investment also has been more or less flat, remaining at a relatively high level. Reflecting these increases in demand both at home and abroad, industrial production has been on an increasing trend, and labor market conditions have continued to tighten steadily. Financial conditions are highly accommodative. On the price front, the year-on-year rate of change in the consumer price index (CPI, all items less fresh food) is around 1.0 percent. Inflation expectations have been more or less unchanged.

With regard to the outlook, Japan's economy is likely to continue its moderate expansion. Domestic demand is likely to follow an uptrend, with a virtuous cycle from income to spending being maintained in both the corporate and household sectors, mainly against the background of highly accommodative financial conditions and the underpinnings through government spending. Exports are expected to continue their moderate increasing trend on the back of overseas economies growing firmly on the whole. The year-on-year rate of change in the CPI is likely to increase gradually toward 2 percent, mainly on the back of the output gap remaining positive and medium- to long-term inflation expectations rising.

Risks to the outlook include the following: the U.S. macroeconomic policies and their impact on global financial markets; the consequences of protectionist moves and their effects; developments in emerging and commodity-exporting economies including the effects of the two aforementioned factors; negotiations on the United Kingdom's exit from the European Union (EU) and their effects; and geopolitical risks.



Bank of Japan | Rida | rida@tradingeconomics.com
12/20/2018 12:21:49 PM



Japan Money Last Previous Highest Lowest Unit
Interest Rate -0.10 -0.10 9.00 -0.10 percent [+]
Interbank Rate -0.08 -0.08 8.50 -0.12 percent [+]
Money Supply M0 102439.10 100372.80 102439.10 2130.10 JPY Billion [+]
Money Supply M1 774471.40 766258.60 774471.40 3921.00 JPY Billion [+]
Money Supply M2 1014179.80 1010519.40 1014179.80 8404.00 JPY Billion [+]
Money Supply M3 1343994.00 1342945.60 1343994.00 1008505.00 JPY Billion [+]
Central Bank Balance Sheet 552084.30 555501.00 555501.00 4864.50 JPY Billion [+]
Foreign Exchange Reserves 1270975.00 1258264.00 1306668.00 455.00 USD Million [+]
Loans to Private Sector 465227.20 460208.50 536555.80 375948.90 JPY Billion [+]
Deposit Interest Rate 0.32 0.30 5.50 0.04 percent [+]
Foreign Stock Investment -428.20 -248.50 1577.40 -2162.40 JPY Billion [+]
Foreign Bond Investment 2209.90 -1003.30 2549.70 -3072.10 JPY Billion [+]
Private Debt to GDP 229.40 227.00 291.90 227.00 percent [+]
Loan Growth 2.40 2.10 3.60 -5.00 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 January of 2019.

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




Country Last Previous
Argentina 57.13 Jan/19
Turkey 24.00 Jan/19
Mexico 8.25 Dec/18
Russia 7.75 Dec/18
South Africa 6.75 Dec/18
Brazil 6.50 Dec/18
India 6.50 Dec/18
Indonesia 6.00 Jan/19
China 4.35 Dec/18
Saudi Arabia 3.00 Dec/18
United States 2.50 Dec/18
Singapore 1.76 Dec/18
Canada 1.75 Jan/19
South Korea 1.75 Dec/18
Australia 1.50 Dec/18
United Kingdom 0.75 Dec/18
Euro Area 0.00 Dec/18
France 0.00 Dec/18
Germany 0.00 Dec/18
Italy 0.00 Dec/18
Netherlands 0.00 Dec/18
Spain 0.00 Dec/18
Japan -0.10 Dec/18
Switzerland -0.75 Dec/18


Related

Latest