BOJ raises policy rate to 0.75%
The Bank decided unanimously to guide the uncollateralized overnight call rate to around 0.75%, up from around 0.5%. The new policy is applied from December 22. 12
The interest rate on the Complementary Deposit Facility was set at 0.75%, and the Basic Loan Rate at 1.0%. Both apply from December 22. 1
The Bank said Japan's economy is recovering moderately despite some weak signs. It judged that firm wage increases are likely again next year and that the risk of a break in firms' active wage-setting is low. 12
The Bank said uncertainty over the US economy and trade policies remains but has declined. It said the likelihood has risen that underlying inflation will be broadly consistent with the 2% target in the latter half of the Outlook Report's projection period. 12
The Bank said real interest rates remain significantly negative after the change, so accommodative financial conditions will continue. If the outlook is realized, it expects to keep raising the policy rate as the economy and prices improve. 12
The minutes of the December 18–19 meeting were approved at the January 22–23, 2026 meeting. 1
Cited releases · 3
BoJPress conferenceDec 19, 2025JA
Governor's regular press conference (December 19, 2025) AIAI translation
BoJStatementDec 19, 2025JA
Change in the Guideline for Money Market Operations AIAI translation
BoJMinutesJan 28, 2026JA