Japan: Indices of Industrial Production for January, 2026 (Revised Report)

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: The Bank will encourage the uncollateralized overnight call rate to remain at around 0.75 percent. Japan's economy has recovered moderately, although some weakness has been seen in part. Overseas economies have grown moderately on the whole, although some weakness has been seen in part, reflecting trade and other policies in each jurisdiction. Exports and industrial production have continued to be more or less flat as a trend. Corporate profits have remained at high levels on the whole, although downward effects due to tariffs have been seen in manufacturing. In this situation, business fixed investment has been on a moderate increasing trend. Private consumption has been resilient against the background of an improvement in the employment and income situation, although it has been affected by price rises. On the other hand, housing investment has been on a declining trend. Meanwhile, public investment has continued to be more or less flat. Financial conditions have been accommodative. On the price front, with moves to pass on wage increases to selling prices continuing, the year-on-year rate of increase in the consumer price index (CPI, all items less fresh food) had been above 2 percent, partly due to the effects of the rise in food prices, such as rice prices; however, the rate of increase has recently fallen to around 2 percent due to factors such as the effects of the government's measures to reduce the household burden of higher energy prices. Inflation expectations have risen moderately Just in | Bank of Japan Votes 8-1 on Key Policy Decision Just in | Bank of Japan Signals Potential Rate Hikes if Economic and Price Trends Align with Forecast BOJ reports moderate economic recovery in Japan, while noting certain weaknesses. Just in | The Bank of Japan highlights potential risks to the country's economic outlook, citing geopolitical developments in the Middle East, fluctuations in oil prices, and foreign exchange market trends.

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BoJ Gov Ueda: Japan's economy is recovering moderately, albeit with some weakness BoJ Gov Ueda: Pace of inflation increase expected to face upward pressure from higher oil prices BoJ Gov Ueda: Underlying inflation expected to be at a level in line with the price target in the second half of the projection period. BoJ's Governor Ueda: Risk factors include the Middle East, oil price, financial and FX market developments BoJ Gov Ueda: Real interest rates are at significantly low levels