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Oxford Economics

Oxford Economics

Economic Research Firm

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BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive

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Providing market-relevant analysis on BOJ pace and yen risks

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 Yesterday