The Bank of Japan kept its short-term policy rate unchanged at 0.75% at its April 2026 meeting, leaving borrowing costs at their highest level since September 1995. The widely expected decision passed by a 6–3 vote, amid uncertainty over the Iran conflict and surging energy prices. Board members Hajime Takata, Naoki Tamura, and Junko Nakagawa dissented, calling for a hike to 1.0%. In its quarterly outlook, the central bank raised its FY2026 core inflation outlook to 2.8% from 1.9%, citing higher crude oil prices that likely push up energy and goods costs. At the same time, policymakers trimmed the FY2026 growth forecast to 0.5% from 1.0%, reflecting softer domestic momentum. Still, the overall economy is expected to expand moderately, underpinned by government support measures, accommodative financial conditions, and resilient corporate profits. The FY2025 GDP projection was slightly lifted to 1.0% from 0.9%, backed by last year’s trade deal with Washington. source: Bank of Japan
The benchmark interest rate in Japan was last recorded at 0.75 percent. Interest Rate in Japan averaged 2.21 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 May of 2026.
The benchmark interest rate in Japan was last recorded at 0.75 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.