Bank of Japan Holds at 1.25% as Board Members Split on the Next Rate Hike

November 10, 2026 by admin

Realtor discussing a mortgage for an apartment purchase

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The Bank of Japan kept its policy rate at about 1.25% in October, and its opinion summary published on 10 November shows members divided on the timing of the next hike.

Rate held at 1.25%

The Bank of Japan kept its short-term policy rate at around 1.25% at its 29–30 October meeting, the highest level since 1995. The vote was 8–1, with Hajime Takata dissenting.

Members debate timing

The summary of opinions, published on 10 November, showed some members see a continuing economic case for more hikes. One member said the bank should decide on its next hike when it is possible without becoming overly cautious. Another warned that a further increase could slow the economy and reduce underlying inflation.

What it means for borrowers and the yen

Higher policy rates feed into mortgage and business loan costs, which affect households and companies across Japan. The gap between Japanese and US interest rates remains wide, and the yen still traded near 158 per dollar in early November. For more, see our finance section and economy coverage.

Source: Bank of Japan, Statement on Monetary Policy (30 October 2026) and Summary of Opinions (10 November 2026).