Bank of Japan meeting —

At its 19 September 2025 meeting, the Bank of Japan held its policy rate at 0.50%.

Decision

hold — 0.50% to 0.50%

Key passages

The Bank will encourage the uncollateralized overnight call rate to remain at around 0.5 percent.

No change, but dissents for hike suggest internal pressure.

Takata Hajime considered that there had been a shift away from the deflationary norm and the price stability target had been more or less achieved. Tamura Naoki considered that, with risks to prices becoming more skewed to the upside, the Bank should set the policy interest rate a little closer to the neutral rate. They proposed that the Bank set the guideline for money market operations as follows: the Bank would encourage the uncollateralized overnight call rate to remain at around 0.75 percent.

Two members voted for a hike, revealing a split and potential future tightening.

Meeting documents

Background reading

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