BOJ Decides to Raise Key Policy Rate to 0.75％

The Yomiuri Shimbun

12:30 JST, December 19, 2025

The Bank of Japan decided Friday to raise its short-term policy rate target from the current level of about 0.5% to about 0.75%.

The policy rate is the highest in 30 years since 1995. It appears that the BOJ has decided that wage increases will be achieved in the 2026 shunto spring wage negotiationｓ, which would help lead to the realization of its inflation rate target of 2%.

The BOJ has kept its policy rate unchanged for six consecutive policy-setting meetings since raising it at its meeting in January due to high uncertainty over the high tariff policy imposed by the U.S. President Donald Trump administration.