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BOJ set to hold rates steady as election, yield spike cloud outlook
The Bank of Japan is set to keep interest rates steady on Friday and signal cautious optimism that the economy will maintain a moderate recovery that would justify raising still-low borrowing costs further. BOJ Governor Kazuo Ueda is likely to offer few clues on when the bank might next raise rates, a decision complicated by a fresh bout of market volatility caused by Prime Minister Sanae Takaichi's decision to call a snap election next month. The central bank is caught between a need to keep yen bears at bay with hawkish communication, without triggering further rises in bond yields on expectations of hefty spending ... (full story)
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Jan 23, 2026 2:21am
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From cnbc.com | Jan 22, 2026
Japan’s central bank on Friday raised economic growth forecasts while holding its key policy rate at 0.75% as the country prepares to go into an election. The Bank of Japan upgraded its economic growth forecast for the fiscal year ending in March 2026 to 0.9% from 0.7% in October 2025, and also raised its GDP expansion outlook for the 2026 fiscal year to 1% ...
At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided, by an 8-1 majority vote, to set the following guideline for money market operations for the intermeeting period: [Note] The Bank will encourage the uncollateralized overnight call rate to remain at around 0.75 percent.
Japan’s economy is likely to continue growing moderately, with overseas economies returning to a growth path, and as a virtuous cycle from income to spending gradually intensifies, supported by factors such as the government’s economic measures and accommodative financial conditions, while the economy is projected to be affected by trade and other policies in each jurisdiction. The year-on-year rate of increase in the consumer price index (CPI. all items less fresh food) is likely to decelerate to a level below 2 percent in the first half of this year, with the waning of the effects of the rise in food prices, such as rice prices, and partly due to the effects of government measures to address rising prices. However, it is likely that the mechanism in which wages and prices rise moderately in interaction with each other will be maintained, and that underlying CPI inflation will continue rising moderately. Thereafter, since it is projected that a sense of labor shortage will grow as the economy continues to improve and that medium- to long-term inflation expectations will rise, it is expected that underlying CPI inflation and the rate of increase in the CPI (all items less fresh food) will increase gradually and. in the second half of the projection period, be at a level that is generally consistent with the price stability target. Breaking | BOJ Highlights Need to Monitor U.S. Economic Factors, Including Tariff Effects on Employment and Corporate Profitability. BOJ: FUTURE DEVELOPMENT IN FOREX, IMPORT PRICES ARE PRICE RISK Just in | Bank of Japan Warns Rising Import Prices May Intensify Household Caution on Spending
