Banks › Bank of Japan › History › 18 Sept 2026
Bank of Japan: decision of 18 September 2026
The Bank of Japan raised its short-term policy rate by 25 basis points to around 1.25%, effective 24 September 2026.
Decision
raise
- Rate
- 1.00%↑1.25%
- Change
- +25 bp
- Vote
- 7–2
- Announced
Sources
- Statement
- boj.or.jp/en/mopo/mpmdeci/mpr_2026/k260…
- Summary of Opinions
- boj.or.jp/en/mopo/mpmsche_minu/opinion_…
- Recorded
- 18 Sept 2026
- Data
- JSON
What the bank said
The Bank said activity and prices had developed generally in line with its July baseline, with core CPI inflation rising to 1.5–2.0% as higher business-to-business prices spilled over into consumer prices.
It said underlying CPI inflation was approaching 2% and that there was a risk of it moving above the 2% target as firms shifted toward raising wages and prices and inflation expectations rose.
It judged that financial conditions would remain accommodative after the increase, with real interest rates low and corporate funding conditions favourable.
Guidance. The Bank said it will continue to raise the policy rate, and that stabilising underlying CPI inflation around 2% had become important.
“the perspective of stabilizing underlying CPI inflation at a level around 2 percent becomes important”
Dissent
Asada Toichiro and Sato Ayano preferred to keep the rate unchanged, Asada noting core CPI inflation below 2% and Sato that economic and price developments had not substantially accelerated.
Before and after
- Previous decision: 31 Jul 2026, held the uncollateralized overnight call rate (short-term policy interest rate) at 1.00%.
- Next scheduled meeting: (calendar).
- All Bank of Japan decisions and the rate history