Today, on January 23, 2026, the Bank of Japan (BOJ) announced a significant shift in its monetary policy:

  • Rate Increase: The central bank will guide its key interest rate, the uncollateralized overnight call rate, to around 0.75 percent. This is an increase from the previous level.

  • Divided Vote: The decision was made by an 8-1 majority vote. A single board member dissented, advocating for an even more aggressive hike to 1.0 percent.

  • Dissenting Opinion: Policy board member Hajime Takata voted against the decision. He argued that Japan's inflation target was largely achieved, overseas economies were recovering, and risks were skewed toward higher prices, justifying a larger move.

This move marks a clear step by the BOJ in a new policy direction.

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