BOJ policy meeting, 31 July 2026: overnight call rate target kept at about 1.0% by 8–1 vote
On 31 July 2026 the Bank of Japan decided, by a vote of 8 to 1, to encourage the uncollateralized overnight call rate to remain at around 1.0%. 12
Board member Takada dissented, submitting a proposal to set the rate at around 1.25%. He cited a new phase requiring a flexible response to upside price risks from an overseas demand shock and to a shift in overseas financial conditions; the proposal was rejected by a majority. 12
The Outlook Report says Japan's economy is expected to keep growing moderately in fiscal 2026 at a reduced pace, with higher oil prices a drag and global AI-related demand and government measures providing support. Growth is expected to rise gradually from fiscal 2027, and the growth outlook is broadly unchanged from the previous report. 12
Year-on-year core CPI (excluding fresh food) is expected to rise clearly above 2% from the second half of fiscal 2026, then narrow toward about 2% later in the projection period. Underlying inflation is expected to become broadly consistent with the price stability target from the second half of fiscal 2026 to fiscal 2027. The fiscal 2026 projection was revised down because of the government's summer energy-burden relief measures. 12
Cited releases · 5
BoJPress conferenceJul 31, 2026JA
総裁定例記者会見（2026年7月31日）
BoJMinutesSep 28, 2026JA
Summary of Opinions at the Monetary Policy Meeting (Minutes of the Meeting Held on July 30 and 31) AIAI translation
AI These minutes of the Bank of Japan's Monetary Policy Meeting held on July 30 and 31, 2026 record the executive staff's report that the uncollateralized overnight call rate moved in a range of 0.976-0.981% and that monthly purchases of Japanese government bonds were about 2.5 trillion yen in July (about 2.7 trillion yen in June). They also set out reports on domestic and overseas financial and economic conditions, noting that Japan's economy is recovering moderately despite the effects of the Middle East situation, along with the members' assessments of overseas economies and prices.
BoJReportJul 31, 2026JA
経済・物価情勢の展望（2026年7月（基本的見解））基本的見解
BoJStatementJul 31, 2026JA
当面の金融政策運営について
BoJReportAug 10, 2026JA