Bank of Japan Says Real Rates Rose Across All Maturities, Signals More Hikes

The Bank of Japan (BOJ) said Monday that real interest rates in Japan had risen across all maturities, with the largest increases at long-term and super-long-term maturities.

The full version of the BOJ’s quarterly outlook, released Monday, Nov. 2, said the bank would continue raising its policy rate. That outlook followed the BOJ’s Friday, Oct. 30, decision to keep the overnight call-rate guideline at about 1.25%, with no increase at the meeting.

The BOJ also increased the annual pace of its exchange-traded fund sales, with the higher pace scheduled to begin in January 2027.

The bank evaluates domestic financial conditions using a wide range of information rather than one indicator, including interviews conducted by its head office and branches.