The Bank of Japan’s Policy Board left its policy stance unchanged on 28 April 2026, maintaining its target for the uncollateralised overnight call rate at “around 0.75 %” in a 6–3 vote; the three dissenters favoured a 25 bp increase to 1.0 %, contending that the 2 % price stability objective is essentially achieved and that inflation risks are skewed higher amid second-round price effects and Middle East uncertainty. After lifting the rate by 25 bp to 0.75 % in December 2025, the central bank has kept that setting at its January and March 2026 meetings. The operating framework continues to rely on guiding the overnight call rate, with no fresh changes to liquidity provisions. As of March, core CPI (all items less fresh food) had eased to “around 2 %”—down from above 2 % after government energy measures—while inflation expectations were said to have “risen moderately” and the economy was recovering moderately with private consumption resilient under accommodative financial conditions. Global financial markets remain volatile and oil prices elevated owing to Middle East tensions, a backdrop the Bank said warrants close monitoring even as it keeps policy steady.
Bank of Japan 2026-04-28
BoJ keeps overnight call rate unchanged at around 0.75%
Bank of Japan held the uncollateralised overnight call rate at around 0.75 % on 28 April (6–3 vote), with three dissenters seeking a 25 bp rise to 1.0 % on the view that inflation, already near the 2 % target, faces upside risks from second-round effects and Middle East-driven energy costs; the bank left December’s 25 bp hike and its liquidity framework unchanged, citing a moderate recovery and volatile global conditions.