Kazuo Ueda

Stories

Bank of Japan's market operations track the unwinding of its easing era

Leading the normalization of Japanese monetary policy

Every business day the Bank of Japan releases a two-page table showing how it managed the roughly ¥550 trillion that Japanese banks hold on deposit at the central bank. The August 24, 2026 statement is one entry in that record — a routine liquidity operation, unremarkable on its own.

Updated Aug 24

BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive

Rule Changes

Doubling down on ‘still-accommodative’ messaging after the hike, while emphasizing data-dependence and readiness to smooth disorderly yield moves

Japan's shift away from ultra-easy money is now colliding with the currency market. After raising rates to 0.75% on December 19, 2025, Governor Kazuo Ueda stressed real rates remain 'very low' or negative and the BOJ will pace tightening while responding flexibly to exceptional long-term yield moves.

Updated May 15

Notable Quotes

“Real interest rates are expected to remain significantly negative.” — BOJ decision statement (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15

“Real interest rates are very low.” — Ueda at post-meeting press conference (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15

If long-term interest rates make exceptional moves, the BOJ will respond with flexible market operations. — Ueda (Dec. 19, 2025)

from BOJ pushes rates to 0.75%: Japan’s “free money” era starts getting expensive · Updated May 15