Overview
- The decision incorporated assessments that the hit from high U.S. tariffs appears smaller than feared and that 2026 shunto talks are likely to deliver solid wage gains.
- The yen weakened to roughly ¥156–157 per dollar after the announcement and press conference.
- Benchmark long‑term government yields climbed above 2% to the highest level in about 26 years, heightening concern over rising debt‑service costs.
- Japan’s consumer prices rose 3.0% in November year on year, the 44th consecutive month above the BOJ’s 2% target.
- The BOJ estimates a nominal neutral rate near 1.0%–2.5% and says policy remains below that range, as the Takaichi government signaled acceptance and attention turns to household and SME cash‑flow pressures.