The BOJ could move to raise rates again as early as September. Attention is focused on the background to the current 1.0% policy rate and the announcement expected at the next meeting.
Market views on the BOJ's policy rate are once again gaining traction. The next Monetary Policy Meeting will be held over two days, on 17 and 18 September, with the results scheduled to be announced on the 18th. If a rate hike materializes, expectations for further BOJ rate increases could affect living costs and financial markets.
The policy rate targeted by the BOJ is the uncollateralized overnight call rate, at which banks and other financial institutions lend to and borrow from one another for one day. It currently stands at 1.0%. The BOJ has so far maintained a policy of raising the rate in stages while assessing price and economic developments.
The previous rate hike came in June 2026, when the rate was raised by 0.25 percentage points, from 0.75% to 1.0%. Since then, the BOJ has carefully assessed economic and price trends, and further increases in similar 0.25-percentage-point increments are reportedly being considered as an option.