BOJ Holds Policy Rate at 0.75% Amid Dissent
The Bank of Japan decided to keep the guideline for the uncollateralized overnight call rate at around 0.75%, by a vote of 8 to 1. 12
Board member Takata dissented, submitting a proposal to set the rate at around 1.0%, citing that the price stability target is largely achieved and upside risks to domestic prices are high; the proposal was rejected by majority vote. 12
The Outlook Report expects Japan's economy to continue growing moderately. Compared with the previous outlook, growth for fiscal 2025 and 2026 is revised up somewhat, while fiscal 2027 is revised down somewhat. 12
Year-on-year core CPI is expected to slow to below 2% in the first half of 2026 as the effect of higher food prices such as rice fades. The price outlook is broadly unchanged from the previous report. 12
Governor Ueda said that if the outlook is realized, the Bank will continue to raise the policy rate in line with improvements in economic activity and prices, noting that real interest rates are currently extremely low. 1
The minutes report that the call rate moved in a 0.727–0.729% range since the previous meeting, and that monthly JGB purchases were reduced by about 400 billion yen to about 2.9 trillion yen in January 2026. 1
Cited releases · 4
BoJPress conferenceJan 23, 2026JA
Governor's regular press conference (January 23, 2026) AIAI translation
BoJMinutesMar 25, 2026JA
Minutes of the Monetary Policy Meeting (January 22–23, 2026) AIAI translation
AI These are the minutes of the Monetary Policy Meeting held on January 22 and 23, 2026. They set out the management's reports on money market operations, financial markets, and overseas and domestic economic and financial conditions, together with an outline of the Board's discussion based on them. Operations were conducted under the guideline to encourage the uncollateralized overnight call rate to remain at around 0.75 percent, and purchases of Japanese government bonds in January 2026 were about 2.9 trillion yen per month. The minutes were approved at the meeting held on March 18 and 19, 2026, and released at 8:50 a.m. on March 25.
BoJReportJan 23, 2026JA
Outlook for Economic Activity and Prices (January 2026): The Bank's View AIAI translation
BoJStatementJan 23, 2026JA