The Bank of Japan (BoJ) raised its key short-term interest rate to around 0% to 0.1% from -0.1% in March 2024, matching market expectations and halting its eight years of negative interest rates. It is the first interest rate hike since 2007, as inflation had exceeded the central bank's 2% target in over a year while the largest companies in the country had agreed to raise salaries by 5.28%, the biggest wage hike in over three decades. However, two of the BoJ’s nine board members, Toyoaki Nakamura and Asahi Noguchi, dissented. The central bank also terminated yield curve control for 10-year government bonds and discontinued the purchases of ETF and Japan real estate investment trusts (J-REITs). Further, the BoJ will slowly reduce the pace of corporate bond buying before fully stopping it in about a year. Still, the bank added that in case of a rapid rise in long-term rates, it would make nimble responses, such as increasing the amount of JGB purchases. source: Bank of Japan
The benchmark interest rate in Japan was last recorded at 0 percent. Interest Rate in Japan averaged 2.28 percent from 1972 until 2024, 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 March of 2024.
The benchmark interest rate in Japan was last recorded at 0 percent. Interest Rate in Japan is expected to be 0.00 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 0.10 percent in 2025, according to our econometric models.
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 | ||
|---|---|---|---|---|---|---|---|---|
| 0.00 | -0.10 | 9.00 | -0.10 | 1972 - 2024 | percent | Daily |
News Stream
Japan Ends Negative Rates, Scraps Yield Curve Control
The Bank of Japan (BoJ) raised its key short-term interest rate to around 0% to 0.1% from -0.1% in March 2024, matching market expectations and halting its eight years of negative interest rates. It is the first interest rate hike since 2007, as inflation had exceeded the central bank's 2% target in over a year while the largest companies in the country had agreed to raise salaries by 5.28%, the biggest wage hike in over three decades. However, two of the BoJ’s nine board members, Toyoaki Nakamura and Asahi Noguchi, dissented. The central bank also terminated yield curve control for 10-year government bonds and discontinued the purchases of ETF and Japan real estate investment trusts (J-REITs). Further, the BoJ will slowly reduce the pace of corporate bond buying before fully stopping it in about a year. Still, the bank added that in case of a rapid rise in long-term rates, it would make nimble responses, such as increasing the amount of JGB purchases.
2024-03-19
Japan Sees Price Goal Progress: BoJ Nakagawa
The Japanese economy was making steady progress towards achieving the central bank's 2% inflation target, Bank of Japan board member Junko Nakagawa said in a speech. The remarks came after a statement from fellow board member Hajime Takata last week that Japan was finally witnessing prospects it could sustainably reach the BoJ's inflation goal. "We can say that prospects for the economy to achieve a positive cycle of (rising) inflation and wages are in sight," Nakagawa said. "If we judge that achievement of our price target is in sight ... we will debate and decide whether or not to modify our policy means including yield curve control and risky asset buying," Regarding economic activity in Japan, Nakagawa said it was on track for a moderate recovery despite recent signs of weakness in consumption.
2024-03-07
Bank of Japan Holds Rates, Trims 2024 Inflation Forecasts
The Bank of Japan kept its key short-term interest rate unchanged at -0.1% and that of 10-year bond yields at around 0% during its January meeting, as expected. Meanwhile, in a quarterly outlook, the BoJ slashed CPI readings for FY 2024 to 2.4% from October's projections of 2.8%, reflecting a recent decline in oil prices. For 2025, the board said that it expects core inflation to hit 1.8%, slightly higher than its earlier estimates of 1.7%. Policymakers also cut their 2023 GDP growth forecast to 1.8% from 2.0%. For FY 2024, the bank revised higher its GDP outlook to 1.2% from 1.0%, supported by pent-up demand. After the decision, BoJ Governor Ueda commented that any potential rate hike would initially seek to maintain BOJ policy in support of the economy and would strive to minimize disruptions. Expanding on the newly incorporated language in the central bank's quarterly outlook report, the governor noted that the confidence in achieving the BOJ's projections has steadily grown.
2024-01-23
