Near-Term Conduct of Monetary Policy

On July 31, 2026, the Bank of Japan's Policy Board decided at its Monetary Policy Meeting on the guideline for money market operations until the next Monetary Policy Meeting. The decision was to encourage the uncollateralized overnight call rate to remain at around 1.0%.

The guideline was approved by 8 votes to 1, with Committee Member Takada voting against it.

Committee Member Takada submitted a proposal to encourage the uncollateralized overnight call rate to remain at around 1.25%, stating that a new phase had been reached requiring flexible and prompt action in response to upside risks to prices from overseas-originated demand shocks and shifts in overseas financial conditions. The proposal was rejected by a majority of opposing votes.

The meeting was held from 2:00 p.m. to 4:00 p.m. on July 30, 2026, and from 9:00 a.m. to 12:04 p.m. on July 31. The guideline was published at 12:11 p.m. on July 31, and the Outlook for Economic Activity and Prices (The Bank's View) was also published that day. The Outlook for Economic Activity and Prices (Full Text, Including Background Explanations) was scheduled for publication at 2:00 p.m. on August 3, the Main Opinions at 8:50 a.m. on August 10, and the Minutes at 8:50 a.m. on September 28.