Japan

Negative in real terms

Policy rate

1.00%

Last move Jun 2026

Inflation

3.17%

As of null

Real policy rate

-2.17%

Policy rate less inflation

Debt to GDP

204.40%

2026 est.

Inflation target2%

Policy rate vs target-1 pp

Last move+25 bps hike

Months at current rate3

Real GDP growth0.70%

Next scheduled decisionNot published

Policy rate path, latest five years. Cycle peak 9.00% (Dec 1973).

The verdict

Japan sets its policy rate at 1.00%, against inflation of 3.17% — a real rate of -2.17%, with the policy rate sitting below the inflation rate. The most recent decision was a 25bp hike in Jun 2026. The rate has held there for about 3 months. The bank targets 2% inflation, and prices are running above that at 3.17%; the policy rate stands 1.00 percentage points below target. On the fiscal side, the economy carries government debt of 204.4% of GDP (2026 est.) and real GDP growth of 0.7%.

Sources: policy rate and cycle history — BIS central bank policy rates (WS_CBPOL); inflation — national statistical agencies; debt and growth — IMF World Economic Outlook. Methodology: https://www.globalfinancialinfo.info/methodology/policy-rates · Dataset: https://www.globalfinancialinfo.info/global-economy · Free to print and share for non-commercial classroom use (CC BY-NC-ND 4.0).

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