The Bank of Japan lifted its key short-term rate by 25bps to 1.0% in a 7-1 vote at its June meeting, marking the highest level since September 1995 and aligning with market expectations. The decision aimed at preventing the Iran war-driven energy shock from fueling broader inflation. The move also marked the central bank's first rate hike since December and its first regular policy meeting without the governor in attendance. Board member Asada Toichiro dissented, citing greater downside risks to production and employment than upside risks to prices. In its policy statement, the board said underlying inflation could accelerate above 2% target amid rising energy costs. It also noted that financial conditions would stay accommodative despite the rate hike, continuing to support economic activity. Policymakers stated that they will continue raising rates as warranted by economic, price, and financial developments, while closely monitoring the Middle East conflict's impact on the economy. 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 June 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
2026-03-19 03:00 AM BoJ Interest Rate Decision 0.75% 0.75% 0.75% 0.75%
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 Quarterly Outlook Report
2026-07-31 03:00 AM BoJ Interest Rate Decision
2026-08-09 11:50 PM BoJ Summary of Opinions


Related Last Previous Unit Reference
Central Bank Balance Sheet 664363.00 663253.30 JPY Billion May 2026
Deposit Interest Rate 0.33 0.33 percent May 2026
Interest Rate 1.00 0.75 percent Jun 2026
Bank Lending YoY 5.70 5.40 percent May 2026
Loans to Private Sector 591368.50 590733.80 JPY Billion May 2026
Monetary Base 5757634.00 5829256.00 JPY Billion May 2026
Monetary Base YoY -12.20 -11.30 percent May 2026
Money Supply M0 110181.30 110562.90 JPY Billion May 2026
Money Supply M1 1102935.10 1103467.50 JPY Billion May 2026
Money Supply M2 1298093.20 1295619.00 JPY Billion May 2026
Money Supply M3 1642404.50 1640907.90 JPY Billion May 2026
Purchases of Government Bonds 2497.50 2569.90 JPY Billion May 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 0.75 9.00 -0.10 1972 - 2026 percent Daily

News Stream
BoJ Hawk Tamura Calls for Rate Hike Every Few Months
Bank of Japan should continue raising interest rates at intervals of a few months, board member Naoki Tamura said in a speech, arguing the policy rate should gradually move toward a neutral level of around 2%, above the current 1%. He noted inflationary pressures are likely to strengthen regardless of Middle East tensions, with higher import costs expected to pass through to consumer prices more quickly and broadly than after Russia’s 2022 invasion of Ukraine, reflecting shifts in firms’ pricing behavior. “Considering the recent increase in upside risks to prices, what I envisage as a baseline path is raising the policy interest rate by 0.25 percentage points at intervals of a few months toward the neutral interest rate level of 2%,” Tamura said. He added that if inflation risks intensify, the central bank should “accelerate the pace of rate hikes without hesitation” by increasing either the frequency or size of moves.
2026-06-25
BoJ June Summary Signals Further Rate Hikes
The Bank of Japan’s June Summary of Opinions indicated broad support among policymakers for continuing rate hikes, citing underlying inflation moving closer to the 2% target while financial conditions remain accommodative. Members said that if the economy and prices evolve in line with the Bank's outlook, further rate hikes would be warranted. Some argued Japan's policy rate remains below the estimated neutral interest rate, seen at around 2%, and should be brought closer to that level to provide greater flexibility to adjust policy in either direction. They also suggested that gradual increases every few months could help avoid the need for more rapid and aggressive tightening later. However, one member cautioned that higher interest rates could curb business investment, weaken aggregate demand, and trigger simultaneous declines in inflation, production, and employment, arguing the board should keep rates unchanged for now.
2026-06-24
BoJ to Maintain Tightening Bias: Deputy Gov Himino
Bank of Japan will continue raising interest rates while closely monitoring the risk that underlying inflation could exceed its 2% target, Deputy Governor Ryozo Himino said on Friday. He noted that wholesale inflation has been accelerating as firms pass on higher costs stemming from the Middle East conflict, raising the possibility of broader price pressures. "There is a risk underlying inflation may deviate upward from our target," Himino told parliament, explaining the central bank's decision to lift its policy rate to 1% earlier this week. While higher oil prices could weigh on growth, he added that Japan's economy remains resilient, supported by strong corporate profits and rising household income. Meanwhile, minutes from the central bank's April meeting showed policymakers agreed that, with underlying inflation nearing 2% and real interest rates still low, it was appropriate to continue gradually lifting rates while assessing the impact of geopolitical volatility on the economy.
2026-06-19