Kazuo Ueda

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

Doubling down on ‘still-accommodative’ messaging after the hike, while emphasizing data-dependence and readiness to smooth disorderly yield moves

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

Notable Quotes

“Real interest rates are expected to remain significantly negative.” — BOJ decision statement (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15

“Real interest rates are very low.” — Ueda at post-meeting press conference (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15

If long-term interest rates make exceptional moves, the BOJ will respond with flexible market operations. — Ueda (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15