The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its June meeting, as widely expected, hours after the Federal Reserve signalled possible interest rate cuts later this year. Policymakers also kept the target for the 10-year Japanese government bond yield at around zero percent, but warned that downside risks regarding overseas economies were likely to be significant so that close attention should be paid to their impacts on firms' and households' sentiment. Interest Rate in Japan averaged 2.77 percent from 1972 until 2019, 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 -0.10 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
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Calendar GMT Actual Previous Consensus TEForecast
2019-01-23 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2019-03-15 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2019-04-25 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2019-06-20 03:00 AM BoJ Interest Rate Decision -0.1% -0.1% -0.1% -0.1%
2019-06-27 11:50 PM BoJ Summary of Opinions
2019-07-30 03:00 AM BoJ Quarterly Outlook Report
2019-07-30 03:00 AM BoJ Interest Rate Decision -0.1% -0.1%



BoJ Holds Rates, Warns of Heightening Global Risks

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent at its June meeting, as widely expected, hours after the Federal Reserve signalled possible interest rate cuts later this year. Policymakers also kept the target for the 10-year Japanese government bond yield at around zero percent, but warned that downside risks regarding overseas economies were likely to be significant so that close attention should be paid to their impacts on firms' and households' sentiment.

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 has been on a moderate expanding trend, with a virtuous cycle from income to spending operating, although exports and production have been affected by the slowdown in overseas economies Overseas economies have been growing moderately on the whole, although slowdowns have been observed. In this situation, exports and industrial production have shown some weakness. On the other hand, corporate profits and business sentiment have stayed at favorable levels on the whole, albeit with some weakness observed in part, and business fixed investment has continued on an increasing trend. Private consumption has been increasing moderately, albeit with fluctuations, against the background of steadyimprovement in the employment and income situation. Housing investment has been more or less flat. Public investment also has been more or less flat, remaining at a relatively high level. Meanwhile, 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 in the range of 0.5-1.0 percent. Inflation expectations have been more or less unchanged.

With regard to the outlook, Japan's economy is likely to continue on a  moderate expanding trend, despite being affected by the slowdown in overseas economies for the time being. Domestic demand is expected 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. Although exports are projected to show some weakness for the time being, they are expcted to be on a moderate increasing trend on the back of overseas economies growing moderately 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 such as China, including the effects of the two aforementioned factors; developments in global adjustments in IT-related goods;  negotiations on the United Kingdom's exit from the European Union (EU) and their effects; and geopolitical risks.


BoJ l Rida Husna | rida@tradingeconomics.com
6/20/2019 5:38:35 AM



Japan Money Last Previous Highest Lowest Unit
Interest Rate -0.10 -0.10 9.00 -0.10 percent [+]
Interbank Rate -0.07 -0.07 8.50 -0.12 percent [+]
Money Supply M0 102636.80 102694.50 102694.50 2130.10 JPY Billion [+]
Money Supply M1 801664.10 797908.80 801664.10 3921.00 JPY Billion [+]
Money Supply M2 1029768.30 1026628.70 1029768.30 8404.00 JPY Billion [+]
Money Supply M3 1359787.10 1355714.60 1359787.10 1008505.00 JPY Billion [+]
Central Bank Balance Sheet 567156.50 562035.70 567156.50 4864.50 JPY Billion [+]
Foreign Exchange Reserves 1307975.00 1293499.00 1307975.00 455.00 USD Million [+]
Loans to Private Sector 467616.70 468173.90 536555.80 375948.90 JPY Billion [+]
Deposit Interest Rate -0.21 -0.25 16.25 -0.51 percent [+]
Foreign Stock Investment -313.40 -94.30 1577.40 -2162.40 JPY Billion [+]
Foreign Bond Investment 445.40 330.50 2549.70 -3072.10 JPY Billion [+]
Private Debt to GDP 229.40 227.00 291.90 227.00 percent [+]
Loan Growth 2.60 2.40 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 June of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
-0.10 -0.10 9.00 -0.10 1972 - 2019 percent Daily




Country Last Previous
Argentina 63.03 Jun/19
Turkey 24.00 Jun/19
Mexico 8.25 May/19
Russia 7.50 Jun/19
South Africa 6.75 May/19
Brazil 6.50 Jun/19
Indonesia 6.00 Jun/19
India 5.75 Jun/19
China 4.35 May/19
Saudi Arabia 3.00 May/19
United States 2.50 Jun/19
Singapore 1.88 May/19
Canada 1.75 May/19
South Korea 1.75 May/19
Australia 1.25 Jun/19
United Kingdom 0.75 Jun/19
Euro Area 0.00 Jun/19
France 0.00 Jun/19
Germany 0.00 Jun/19
Italy 0.00 Jun/19
Netherlands 0.00 Jun/19
Spain 0.00 Jun/19
Japan -0.10 Jun/19
Switzerland -0.75 Jun/19


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