Bank of Japan

Money Moves

Normalizing policy after decades of ultra-loose conditions

Tokyo's core inflation hit 2.7% in September, the fastest pace in 10 months and the first reading above the Bank of Japan's 2% target since January. It accelerated for a fourth straight month, led by food prices up 3.6% and a 65.6% spike in water fees as summer subsidies lapsed.

Updated 4 days ago

Rule Changes

Actively tightening monetary policy

The Bank of Japan raised its benchmark interest rate to 1.25% on Friday, the highest level since 1995. The 7-2 vote extends the fastest tightening cycle since the early 1990s: six hikes since March 2024.

Updated Sep 21

Money Moves

Conducts daily market operations; normalizing policy since March 2024

Every business day the Bank of Japan releases a two-page table showing how it managed the roughly ¥550 trillion that Japanese banks hold on deposit at the central bank. The August 24, 2026 statement is one entry in that record — a routine liquidity operation, unremarkable on its own.

Updated Aug 24

Rule Changes

Tightening policy and tapering bond purchases after decades of ultra-easy settings

Japan's shift away from ultra-easy money is now colliding with the currency market. After raising rates to 0.75% on December 19, 2025, Governor Kazuo Ueda stressed real rates remain 'very low' or negative and the BOJ will pace tightening while responding flexibly to exceptional long-term yield moves.

Updated May 15