The Bank of Japan kept its short-term policy rate unchanged at 1.0% at its July 2026 meeting, leaving borrowing costs at their highest level since September 1995 after raising the rate by 25bps in June, as the board warned that underlying inflation could exceed the 2% target. The widely expected decision passed by an 8-1 vote, with board member Hajime Takata dissenting and calling for a hike to 1.25%. The board judged risks to economic activity to be broadly balanced, while noting the need to monitor the impact of global AI-related demand and yen movements. In its quarterly outlook, the BoJ cut its FY2026 inflation forecast to 2.5% from 2.8%, reflecting government steps to ease households' summer energy costs. Meantime, policymakers slightly raised their FY2026 GDP growth projection to 0.6% from 0.5%, amid resilient domestic demand and continued support measures. For FY2027, the BoJ lifted its inflation forecast to 2.4% from 2.3%, while raising its GDP growth outlook to 0.8% from 0.7%. 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 9.00 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 August 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
2026-04-28 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%
2026-07-31 03:00 AM BoJ Interest Rate Decision 1% 1% 1% 1%
2026-09-18 03:00 AM BoJ Interest Rate Decision
2026-09-30 11:50 PM BoJ Summary of Opinions
2026-10-30 03:00 AM BoJ Quarterly Outlook Report


Related Last Previous Unit Reference
Central Bank Balance Sheet 644295.70 639550.90 JPY Billion Jul 2026
Deposit Interest Rate 0.33 0.33 percent Jul 2026
Interest Rate 1.00 1.00 percent Jul 2026
Bank Lending YoY 5.40 5.70 percent Jul 2026
Loans to Private Sector 599336.40 596065.90 JPY Billion Jul 2026
Monetary Base 5592039.00 5757634.00 JPY Billion Jun 2026
Monetary Base YoY -13.80 -13.70 percent Jul 2026
Money Supply M0 109904.30 109576.60 JPY Billion Jul 2026
Money Supply M1 1090458.00 1097143.70 JPY Billion Jul 2026
Money Supply M2 1297007.40 1296125.00 JPY Billion Jul 2026
Money Supply M3 1641235.50 1639780.10 JPY Billion Jul 2026
Purchases of Government Bonds 2338.60 2523.40 JPY Billion Jul 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 1.00 9.00 -0.10 1972 - 2026 percent Daily

News Stream
BoJ Sees Rising Case for Further Tightening: July Summary of Opinions
Bank of Japan’s July summary of opinions revealed policymakers see room to keep raising rates as underlying inflation nears 2% and financial conditions remain supportive. They stressed the need to judge timing and pace carefully, watching economic activity, prices, financial conditions, and external factors such as Middle East tensions, AI-driven demand, and currency moves. Several noted rising upside risks to inflation, with one view suggesting hikes could come faster than markets anticipate if conditions warrant. The summary underscored that the BoJ has entered a new phase requiring flexibility rather than a preset path, as concerns over weak growth have eased and inflationary pressures may strengthen into summer. Policymakers also emphasized the importance of clearly signaling determination to prevent excessive price gains, highlighting a shift toward more nimble, risk-aware policy management.
2026-08-10
BoJ Highlights Inflation Risks: June Meeting Minutes
Minutes from the Bank of Japan’s June meeting underscored mounting concern over inflation risks. Most board members judged that higher crude oil costs were quickly filtering through business transactions and broadening into consumer prices. Several warned that underlying inflation could overshoot the 2% target, with fuel costs compounding pressures from a weak yen and tight labor market. Some policymakers expected consumer inflation to accelerate in the second half as firms implement widespread price hikes. One member cautioned that even if Middle East tensions ease and oil prices fall, elevated shipping and storage costs for alternative energy would sustain inflationary pressure. The minutes also showed two members favored faster rate hikes to move policy closer to neutral, citing firms’ greater willingness to raise prices. The BoJ lifted its policy rate to 1.0% in June but held steady in July, while signaling that upside risks could justify another hike as early as September.
2026-08-05
BoJ Holds Rates, Flags Balanced Risks to Economic Activity
The Bank of Japan kept its short-term policy rate unchanged at 1.0% at its July 2026 meeting, leaving borrowing costs at their highest level since September 1995 after raising the rate by 25bps in June, as the board warned that underlying inflation could exceed the 2% target. The widely expected decision passed by an 8-1 vote, with board member Hajime Takata dissenting and calling for a hike to 1.25%. Policymakers judged risks to economic activity to be broadly balanced, while noting the need to watch the impact of global AI-related demand and FX movements. In its quarterly outlook, the BoJ cut its FY2026 inflation forecast to 2.5% from 2.8%, reflecting government steps to ease households' summer energy costs. Meantime, policymakers slightly raised their FY2026 GDP growth projection to 0.6% from 0.5%, amid resilient domestic demand and continued support measures. For FY2027, the BoJ lifted its inflation forecast to 2.4% from 2.3%, while raising its GDP growth outlook to 0.8% from 0.7%.
2026-07-31