Bank of Japan Raises Policy Rate to 1%
한국어 English
The Bank of Japan raised its uncollateralized overnight call rate target to around 1.0 percent on June 16, 2026, then held it there on July 31. The votes were 7–1 and 8–1; board member Takata Hajime dissented both times, proposing a further hike to 1.25 percent in July.
Verified facts
- The Bank of Japan decided on June 16, 2026 to set the uncollateralized overnight call rate target at around 1.0 percent, effective June 17, per the official statement.
- At the July 31, 2026 meeting the Bank decided to keep the target at around 1.0 percent, per the official statement.
Reported, not confirmed
Statements from a single source, or where sources disagree- The June decision passed 7–1; the complementary deposit facility rate was set at 1.0 percent and the basic loan rate at 1.25 percent (official statement, single source).
- The July decision passed 8–1. Dissenting member Takata Hajime proposed raising the target to around 1.25 percent, and the proposal was defeated (official statement, single source).
- In June, Takata Hajime and Tamura Naoki opposed the price outlook wording, considering that underlying CPI inflation had already broadly reached the price stability target (official statement, single source).
- The June statement assessed that Japan's economy had recovered moderately, with some weakness partly due to the situation in the Middle East (official statement, single source).
Timeline
- June 16, 2026The Bank raises the uncollateralized overnight call rate target to around 1.0% on a 7–1 vote; effective June 17.
- July 31, 2026The Bank holds the target at around 1.0% on an 8–1 vote. Takata Hajime proposes 1.25%; the proposal is defeated.
Frequently asked
What is Japan's policy rate?
Around 1.0%, expressed as a target for the uncollateralized overnight call rate. It was raised to this level on June 16, 2026 and held on July 31.
Did the dissenting vote call for easing?
No. Both dissents were on the hawkish side. In July, Takata Hajime proposed raising the target to around 1.25% rather than lowering it. In June he and Tamura Naoki opposed the price outlook wording, judging that underlying CPI inflation had already broadly reached the target.
Sources
Source titles are kept in their original language- 1 Change in the Guideline for Money Market Operations (June 16, 2026) primary
- 2 Statement on Monetary Policy (July 31, 2026) primary
- 3 일본은행 공식 홈페이지 primary
Official links
- official 일본은행(Bank of Japan)
- doc 금융정책결정회의 성명 원문 (2026-07-31)
This English edition covers the verified facts and sourced claims. The full document — with sentence-level source references, timeline, FAQ and the complete revision history — is maintained in the Korean edition.