Banks › Bank of Japan › History › 16 Jun 2026
Bank of Japan: decision of 16 June 2026
The Bank of Japan raised its short-term policy rate by 25 basis points to around 1.0%, effective 17 June 2026.
Decision
raise
- Rate
- 0.75%↑1.00%
- Change
- +25 bp
- Vote
- 7–1
- Announced
Sources
- Statement
- boj.or.jp/en/mopo/mpmdeci/mpr_2026/k260…
- Summary of Opinions
- boj.or.jp/en/mopo/mpmsche_minu/opinion_…
- Minutes
- boj.or.jp/en/mopo/mpmsche_minu/minu_202…
- Recorded
- 16 Jun 2026
- Data
- JSON
What the bank said
The Bank said the economy had developed generally in line with its baseline scenario and that the risk of a significant slowdown appeared to have decreased, helped by government measures and alternative supply sources for raw materials.
It said core CPI inflation was below 2% because of energy-cost measures, but that pass-through of higher crude oil prices in business-to-business transactions and rising inflation expectations created a risk of underlying inflation moving above the 2% target.
It judged that financial conditions would remain accommodative after the increase, with real interest rates negative mainly in the short- to medium-term zone.
Guidance. The Bank said it will continue to raise the policy rate, weighing the timing and pace while monitoring the impact of the Middle East situation.
“Accommodative financial conditions are expected to be maintained after the change in the policy interest rate, continuing to firmly support economic activity.”
Dissent
Asada Toichiro dissented, judging that downside risks to production and employment from the Middle East situation outweighed upside risks to prices, and preferred to keep the rate unchanged.
Before and after
- Previous decision: 28 Apr 2026, held the uncollateralized overnight call rate (short-term policy interest rate) at 0.75%.
- Next decision: 31 Jul 2026, held the uncollateralized overnight call rate (short-term policy interest rate) at 1.00%.
- All Bank of Japan decisions and the rate history