BOJ policy meeting of 16 June 2026: overnight call rate target raised to about 1.0% by a 7–1 vote
The Bank decided to guide the uncollateralized overnight call rate to around 1.0%, by a vote of 7 in favor and 1 against. The new target applies from the next business day, June 17. 1
The interest rate on the complementary deposit facility was set at 1.0% and the basic loan rate at 1.25%. Deputy Governor Uchida explained that the target had been raised from the previous 0.75%. 12
Member Asada dissented, saying that the Middle East situation poses larger downside risks to output and employment than upside risks to prices, and that the policy stance should have been kept unchanged. 1
The Bank assessed that Japan's economy is recovering moderately despite some weakness linked to the Middle East, and that the risk of a major downturn has fallen from earlier levels. 12
On prices, the Bank said faster pass-through in business-to-business transactions could spread to consumer prices, and that there is a risk underlying inflation overshoots 2%. Uchida said further rate increases would be made according to economic, price and financial conditions, with timing and pace depending on the effects of Middle East developments. 12
The minutes (published August 5) record that the meeting was held June 15–16 with Governor Ueda absent, and that Deputy Governor Himino chaired in his place. Ueda submitted his views in writing. 1