The Bank of Japan held its policy interest rate at 0.50% at its June 2025 monetary policy meeting. The rate decision was unanimous, while the Policy Board voted 8–1 to slow the pace of JGB purchase reductions from April 2026.
The Bank said private consumption had maintained a moderate increasing trend against the background of an improvement in the employment and income situation, and that firms were continuing to pass wage increases on to selling prices. The BoJ has long identified sustained, broad-based wage increases as a precondition for confidence that inflation will stabilise durably around its 2% target rather than reflect transitory external cost pressures.
POLICY GUIDANCE
The Bank of Japan reiterated its bias toward gradual tightening at the June meeting.
ECONOMIC ASSESSMENT
The BoJ said Japan's economy had recovered moderately.
The bank said it would continue to examine economic activity, price trends, and financial conditions at each meeting and adjust its policy stance as warranted.