Japan Interest Rate

The benchmark interest rate in Japan was last recorded at 0 percent. Interest Rate in Japan is reported by the Bank of Japan. Historically, from 1972 until 2013, Japan Interest Rate averaged 3.24 Percent reaching an all time high of 9 Percent in December of 1973 and a record low of 0 Percent in February of 1999. In Japan, decisions on interest rates are made by the Bank of Japan's Policy Board in its Monetary Policy Meetings. The BoJ's official interest rate is the discount rate. Monetary Policy Meetings produce a guideline for money market operations in inter-meeting periods and this guideline is written in terms of a target for the uncollateralized overnight call rate. This page includes a chart with historical data for Japan Interest Rate.

 TO REFRESH |  COMPARE
Japan Interest Rate
    EMAIL
 
Bank of Japan Keeps Monetary Policy Unchanged
Bank of Japan | Nuno Fontes | nuno@tradingeconomics.com  |  4/26/2013 8:58:47 AM


At the Monetary Policy Meeting held in April 26th, the Policy Board of the Bank of Japan decided to maintain the quantitative and qualitative monetary easing policy introduced in the previous meeting. This follows the Bank's goal to achieve the price stability target of 2 percent in terms of the year-on-year rate of CPI.

Japan's economy has stopped weakening and has shown some signs of picking up. Looking ahead, it is expected to return to a moderate recovery path around mid-2013, mainly against the background that domestic demand remains resilient due to the effects of monetary easing as well as various economic measures, and that growth rates of overseas economies gradually pick up.

Thereafter, while the economy will be affected by the front-loaded increase and subsequent decline in demand prior to and after the two scheduled consumption tax hikes, it is likely to continue growing at a pace above its potential, as a trend, as a virtuous cycle among production, income, and spending is maintained.
 
As for the future conduct of monetary policy, the Bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate. 
 
Such conduct of monetary policy will support the positive movements that have started to appear in economic activity and financial markets, contribute to a further pick-up in inflation expectations that appear to have risen, and lead Japan's economy to overcome deflation that has lasted for nearly 15 years. 

ARCHIVE
Bank of Japan Introduces Quantitative Easing; Rates Unchanged
At the Monetary Policy Meeting held in April 4th, the Policy Board of the Bank of Japan decided upon the introduction of "quantitative and qualitative monetary easing". This follows the Bank's goal to achieve the price stability target of 2 percent in terms of the year-on-year rate of CPI at the earliest possible time. 2013-04-04
Bank of Japan Engages in Monetary Easing
At the Monetary Policy Meeting held on December 20th, the Policy Board of the Bank of Japan decided to pump more money into Japan’s economy by boosting its asset-purchase and lending program by $120 billion. 2012-12-20
Bank of Japan Keeps Monetary Policy Unchanged
At the Monetary Policy Meeting held on March 7th, the Policy Board of the Bank of Japan decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent. 2013-03-07
Bank of Japan Keeps Monetary Policy Unchanged
At the Monetary Policy Meeting held on November 20th, the Policy Board of the Bank of Japan decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent while at the same time engaging in aggressive monetary easing. 2012-12-11
Japan's Monetary Policy Remains Unchanged in February
The Bank of Japan decided to keep interest rates unchanged in February, in the range between 0 and 0.1 percent. 2013-02-14
Bank of Japan Enhances Monetary Easing
At the Monetary Policy Meeting held on October 30, the Policy Board of the Bank of Japan decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent while at the same time enhancing monetary easing. 2012-10-30
Bank of Japan Widens Stimulus Efforts
The Bank of Japan on January 22nd set an ambitious target to defeat the nation’s crippling deflation and pledged to extend indefinitely its quantitative easing program, following intense pressure from the country’s new government. 2013-01-22
Bank of Japan Keeps Interest Rates Steady
At the Monetary Policy Meeting held on September 19, the Policy Board of the Bank of Japan decided, by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent while at the same time enhancing monetary easing. 2012-09-19
Bank of Japan Engages in Monetary Easing
Following new prime minister call for bolder action against deflation, the Bank of Japan decided in December 20th to engage in more aggressive monetary easing by expanding asset-buying and lending program to $1.2 trillion, and hinted at a review of its current 1 percent inflation target. The bank also decided to keep its benchmark interest rate steady at a range of zero to 0.1 percent. 2012-12-20



Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.






Buy Ads Directly on TRADING ECONOMICS