The Bank of Japan kept its key short-term interest rate unchanged at 0.75% at its first policy meeting of 2026, maintaining borrowing costs at their highest level since September 1995, ahead of February's snap election. The widely expected decision was backed by an 8–1 vote, with board member Hajime Takata calling for a hike while others viewed risks to the economic and price outlook as broadly balanced. Policymakers reiterated that rates could rise further, following two hikes in 2025, if activity and inflation evolve in line with projections. In its quarterly outlook, the board raised its FY 2025 GDP growth to 0.9% from 0.7%, citing support from a recent trade deal with Washington and Tokyo’s large stimulus package, which includes subsidies for electricity and gas bills, expanded local government grants, and higher defense spending. The FY 2026 GDP forecast was also lifted to 1.0% from 0.7%, while the core consumer inflation outlook for FY 2026 was nudged up to 1.9% from 1.8%. source: Bank of Japan

The benchmark interest rate in Japan was last recorded at 0.75 percent. Interest Rate in Japan averaged 2.22 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 February of 2026.

The benchmark interest rate in Japan was last recorded at 0.75 percent. Interest Rate in Japan is expected to be 0.75 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
2025-10-30 03:00 AM BoJ Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2025-12-19 03:30 AM BoJ Interest Rate Decision 0.75% 0.5% 0.75% 0.75%
2026-01-23 03:00 AM BoJ Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
2026-03-19 03:00 AM BoJ Interest Rate Decision
2026-03-29 11:50 PM BoJ Summary of Opinions
2026-04-28 03:00 AM BoJ Quarterly Outlook Report


Related Last Previous Unit Reference
Central Bank Balance Sheet 682868.00 677776.20 JPY Billion Jan 2026
Deposit Interest Rate 0.23 0.23 percent Jan 2026
Interest Rate 0.75 0.75 percent Jan 2026
Bank Lending YoY 4.50 4.40 percent Jan 2026
Loans to Private Sector 584591.10 581271.60 JPY Billion Jan 2026
Monetary Base 5982092.00 6029405.00 JPY Billion Jan 2026
Monetary Base YoY -9.50 -9.80 percent Jan 2026
Money Supply M0 112275.00 112344.00 JPY Billion Jan 2026
Money Supply M1 1091959.20 1090954.80 JPY Billion Jan 2026
Money Supply M2 1279111.70 1278905.10 JPY Billion Jan 2026
Money Supply M3 1627198.40 1627423.30 JPY Billion Jan 2026
Purchases of Government Bonds 27321.00 3083.90 JPY Billion Jan 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
0.75 0.75 9.00 -0.10 1972 - 2026 percent Daily

News Stream
BoJ Masu Says Further Rate Hikes Needed
Further interest rate hikes will be necessary to complete Japan’s monetary policy normalization, central bank board member Kazuyuki Masu said in a speech on Friday. Masu noted that raising rates would help reduce the policy divergence between Japan and other major economies, a gap widely seen as a key driver of prolonged yen weakness that has pushed up import costs for businesses and households. Masu stressed that policy tightening must be handled carefully. He said timely and appropriate rate hikes are needed to keep underlying inflation below 2%, while warning against raising rates too aggressively in a way that could disrupt the gradual upward trend in wages and inflation. The speech was Masu’s first public appearance since joining the Bank of Japan’s nine-member board last July, when he characterized his stance as balanced between hawkish and dovish views.
2026-02-06
BoJ Downplays Behind-the-Curve Risk: January Meeting Summary
The Bank of Japan’s risk of falling behind the curve has not increased markedly, a summary of opinions at its January meeting showed. Still, careful and timely policy execution is seen as increasingly vital. With real interest rates still deeply negative, and assuming the central bank’s outlook for activity and prices holds, further rate hikes are considered appropriate. The board is gauging each move’s impact on growth, inflation, and financial conditions, pursuing gradual tightening, though policy remains highly accommodative amid yen weakness Underlying inflation has moved closer to the 2% target, supporting the case for continued adjustments. Looking ahead, shifts in overseas rate environments could heighten the risk of lagging policy. Japan’s real policy rate remains the lowest globally, and forex markets’ sensitivity to rate differentials underscores the need to narrow the gap. Yen weakness and rising yields largely reflect fundamentals, leaving timely hikes as the key response.
2026-02-02
BoJ Board Eyes Further Hikes: December Minutes
The Bank of Japan’s December minutes showed board members favored continued rate hikes if the outlook for growth and prices holds, while keeping an overall accommodative stance. They judged the economy had recovered moderately, though manufacturing profits faced pressure from U.S. tariffs. Still, the impact had not spread broadly to investment, jobs, or wages. Exports and industrial output were seen as flat, while private consumption remained resilient, supported by income and employment gains, though higher prices weighed somewhat. On inflation, most members expected core CPI to slow below 2% through the first half of fiscal 2026 as food costs ease and government measures curb price pressures. They agreed financial conditions would stay accommodative even with a 0.75% policy rate, noting real rates remain deeply negative. Most stressed policies should be decided on a meeting-by-meeting basis, without a preset pace, based on careful assessment of economic, price, and financial trends.
2026-01-28