BOJ’s Ueda Notes Japan’s Economy Showing Moderate Recovery, Though Weakness Persists

Japan economy minister Kiuchi: I respect BoJ's decision, but need to be mindful of the economic outlook Japan economy minister Kiuchi: Need to regard the point that there's divergence in the neutral 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. In accordance with the change in the guideline for money market operations, the Bank decided, by a unanimous vote, to change the interest rates applied to its measures. Interest rate applied to the complementary deposit facility The interest rate applied to the complementary deposit facility (the interest rate applied to current account balances held by financial institutions at the Bank, excluding required reserve balances) will be 0.75 percent. Decision at the December 2025 MPM It is highly likely that the mechanism in which both wages and prices rise moderately will be maintained. • The likelihood of realizing the baseline scenario that underlying CPI inflation will be at a level that is generally consistent with the price stability target of 2 percent in the second half of the projection period of the October 2025 Outlook Report has been rising. • While uncertainties remain, they have declined. • It is highly likely that firms will continue to raise wages steadily next year, following the solid wage increases this year. • The risk of firms' active wage-setting behavior being interrupted is low. BOJ: JAPAN'S REAL RATE IS AT SIGNIFICANTLY LOW LEVEL BOJ: TO RAISE RATES IN LINE WITH ECONOMIC, PRICE IMPROVEMENT BOJ: ACCOMMODATIVE CONDITIONS TO KEEP SUPPORTING ECONOMY

The Bank of Japan has raised its interest rates on Friday to levels unseen in three decades and signalled readiness for further hikes, taking another landmark step in ending decades of huge monetary support and near-zero borrowing costs. In a widely expected move, the BOJ raised short-term interest rates to 0.75 per cent from 0.5 per cent in the first ...