Rates & Yields
BOJ policy rate
The Bank of Japan’s main operating target — the uncollateralized overnight call rate — shown daily.
What this shows
The Bank of Japan carries out monetary policy by steering a very short-term interest rate: the uncollateralized overnight call rate, which banks charge each other for loans repaid the next day. This chart shows that rate, which serves as a proxy for the policy stance.
For much of the past decade the rate sat at or below zero, including a negative-rate period from January 2016 to March 2024. Movements reflect Bank of Japan policy decisions and money-market conditions.
How to read it: The line is an annualised percentage rate. Long flat stretches reflect periods when policy was held steady; a negative value means the overnight rate was below zero.
Terms on this page
- Policy rate
- The Bank of Japan implements monetary policy by steering the uncollateralized overnight call rate — the rate at which banks lend to each other overnight without collateral. This chart shows that rate as a proxy for the policy stance.
- Uncollateralized overnight call rate
- The "call market" is where banks lend each other very short-term funds. The uncollateralized overnight rate is the headline rate in this market and is the Bank of Japan's main operating target for monetary policy.