Banks › Bank of Japan › History › 31 Jul 2026
Bank of Japan: decision of 31 July 2026
The Bank of Japan kept its short-term policy rate at around 1.0%.
Decision
hold
- Rate
- 1.00%=1.00%
- Change
- 0 bp
- Vote
- 8–1
- 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…
- Outlook Report
- boj.or.jp/en/mopo/outlook/gor2607b.pdf
- Recorded
- 31 Jul 2026
- Data
- JSON
What the bank said
The Bank said the economy was expected to keep growing moderately, though more slowly, in fiscal 2026, as higher crude oil prices tied to the Middle East were offset by government measures, accommodative financial conditions and global AI-related demand.
It projected core CPI inflation, recently around 1.5%, to accelerate clearly above 2% from the second half of fiscal 2026 on oil prices, semiconductor prices and the weaker yen, before easing toward around 2%.
It said risks to prices were skewed to the upside and that it had to keep underlying inflation from rising above the 2% target.
Guidance. The Bank said it will continue to raise the policy rate, weighing the timing and pace against risks including the Middle East, AI-related demand and exchange rates.
Dissent
Takata Hajime proposed raising the rate to around 1.25%, considering that upside risks to prices from overseas demand shocks and overseas financial conditions called for a nimble approach.
Before and after
- Previous decision: 16 Jun 2026, raised the uncollateralized overnight call rate (short-term policy interest rate) by 25 bp to 1.00%.
- Next decision: 18 Sept 2026, raised the uncollateralized overnight call rate (short-term policy interest rate) by 25 bp to 1.25%.
- All Bank of Japan decisions and the rate history