**Bank of Japan (Japonya Merkez Bankası - BOJ) interest rate latest status:**

As of December 24, 2025, the BOJ's policy interest rate (short-term interest rate) is **%0.75**.

- The BOJ raised the interest rate by 25 basis points at the monetary policy meeting on December 18-19, 2025, increasing it from %0.50 to %0.75.

- This level is the highest interest rate seen since 1995 and the decision was made unanimously.

- The increase was based on the alignment of inflation with the 2% target, continued wage increases, and economic recovery.

- The BOJ signaled **further interest rate increases** (potentially continuing in 2026) noting that real interest rates remain low and the economic and price outlook aligns with expectations.