🇯🇵

Bank of Japan

JPY · Official Website

Latest Statement

🦅 Hawkish

Change in the Guideline for Money Market Operations: Bank of Japan

2025-12-19

The Bank of Japan has decided to adjust its guideline for money market operations, aiming to maintain the uncollateralized overnight call rate at around 0.75 percent. This decision reflects a moderate recovery in Japan's economy, with expectations of continued wage increases and rising inflation.

The uncollateralized overnight call rate will be encouraged to stay at approximately 0.75 percent.
The interest rate for the complementary deposit facility will also be set at 0.75 percent, while the basic loan rate will be 1.0 percent.
Japan's economy shows moderate recovery, with tight labor market conditions and high corporate profits.
There is an expectation of steady wage increases and a moderate rise in underlying CPI inflation.

⚡ Rate

↑1 ↓0 →0

🔮 Guidance

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🗣 Dissent

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📝 Classified Sentences

⚡ Rate Hikemp_interest_rate

"At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided, by a unanimous vote, to set the following guideline for money market operations for the intermeeting period: The Bank will encourage the uncollateralized overnight call rate to remain at around 0.75 percent."

🔮 Guidance Hawkishmp_interest_rate

"In view of these developments in economic activity and prices, the Bank judged it appropriate to adjust the degree of monetary accommodation from the perspective of sustainable and stable achievement of the price stability target of 2 percent."

🗣 Dissent Hawkishmp_inflation

"Takata Hajime opposed the description regarding the outlook for prices, considering that the level of the rate of increase in the CPI, including underlying CPI inflation, already had generally reached the price stability target."

🗣 Dissent Hawkishmp_inflation

"Tamura Naoki opposed the description regarding the outlook for underlying CPI inflation, considering that underlying CPI inflation was likely to be at a level that was generally consistent with the price stability target from the middle of the projection period."

Bank Profile

Mandate

Price stability (2% CPI inflation sustainable with wage growth)

Decision Types

Policy interest rate, Yield Curve Control (YCC), Quantitative and Qualitative Easing (QQE), ETF/J-REIT purchases

Policy Instruments

Short-term policy rate, 10-year JGB yield target, Asset purchases (JGBs, ETFs, J-REITs, CP, corporate bonds)

Target Indicators

CPI inflation (2%), Output gap, Wage growth, Inflation expectations

Communication Style

Detailed statements, visible board member dissent, forward guidance on policy duration

Committee

Policy Board - 9 members (Governor, 2 Deputy Governors, 6 Board Members)

Economic Indicators

Policy Rate	1.00%
USD/JPY	159.60
GDP Growth	0.7%
M2 Growth	3.1%
10Y Yield	2.72%
2y10y Spread	+1.28%

HISTORICAL TRENDS

Policy Rate

FX Rate

CPI

GDP

10Y Yield

2Y-10Y Spread

Stance

Key Commodities

Top traded commodities for Japan

Commodity	Price	1D	30D
Brent Crude Oil	81.62 USD/barrel	+9.8%	-17.0%
Copper	13,552.04 USD/mt	+0.3%	+61.2%

Recent Statements

Statement on Monetary Policy: Bank of Japan ⚖️ Neutral

2025-10-30

⚡ Rate

↑0 ↓0 →1

📝 Classified Sentences

⚡ Rate Holdmp_interest_rate

Statement on Monetary Policy: Bank of Japan 🦅 Hawkish

2025-09-19

⚡ Rate

↑0 ↓0 →1

🗣 Dissent

↑2 ↓0

💧 QE/QT

↑1 ↓0

📝 Classified Sentences

💧 Liquidity Tightmp_interest_rate

"The Bank decided, by a unanimous vote, to sell these assets to the market in accordance with the fundamental principles for their disposal, which include the principle to avoid inducing destabilizing effects on the financial markets."

🗣 Dissent Hawkishmp_interest_rate

"Takata Hajime considered that there had been a shift away from the deflationary norm and the price stability target had been more or less achieved."

🗣 Dissent Hawkishmp_interest_rate

"Tamura Naoki considered that, with risks to prices becoming more skewed to the upside, the Bank should set the policy interest rate a little closer to the neutral rate."

⚡ Rate Holdmp_interest_rate

"At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided, by a 7-2 majority vote, to set the following guideline for money market operations for the intermeeting period: The Bank will encourage the uncollateralized overnight call rate to remain at around 0.5 percent."

Statement on Monetary Policy: Bank of Japan ⚖️ Neutral

2025-07-31

Statement on Monetary Policy: Bank of Japan ⚖️ Neutral

2025-06-17

🔮 Guidance

↑0 ↓1

💧 QE/QT

↑2 ↓1

📝 Classified Sentences

💧 Liquidity Tightmp_interest_rate

"The Bank decided, by an 8-1 majority vote, on a plan to reduce the amount of its monthly outright purchases of JGBs so that it will be about 2 trillion yen in January-March 2027."

💧 Liquidity Tightmp_interest_rate

"The amount will be cut down, in principle, by about 400 billion yen each calendar quarter until January-March 2026, and by about 200 billion yen each calendar quarter from April-June 2026."

💧 Liquidity Easemp_interest_rate

"In addition to this decision, from the viewpoint of improving liquidity in the JGB market, the Bank will implement measures regarding the Securities Lending Facility, including an expansion of the issues of JGBs applicable to the relaxed conditions for the reduction in the Bank's repurchase amount."

🔮 Guidance Dovishmp_interest_rate

"In the case of a rapid rise in long-term interest rates, it will make nimble responses by, for example, increasing the amount of JGB purchases and conducting fixed-rate purchase operations of JGBs -- both of which can be done regardless of the monthly schedule of JGB purchases -- and the Funds-Suppl..."

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