World Economy/Japan

🇯🇵

Japan

JPN

Asia-Pacific • Sovereign Currency: JPY

Analyze Japan with Schema AI

Nominal GDP

$4.11T

2024 Nominal

Annual GDP Growth

+0.9%

YoY Q3 2024 (Annualized)

Inflation (CPI)

2.3%

Oct 2024 Core CPI

Policy Rate

0.50%

Call Rate Target

10Y Sovereign Yield

1.07%

10-Year JGB

Unemployment Rate

2.5%

Sep 2024

Debt-to-GDP

254.6%

2024 General Government

Trade Balance

$-3.1B

Oct 2024 Goods

BLOOMBERG ECONOMICS MONETARY POLICY TRANSMISSION

🇯🇵BANK OF JAPAN POLICY DASHBOARD

Target Instrument: Uncollateralized Overnight Call Rate • Sovereign: Japan (JPN)

STANCE: dovish

Next Meeting: 2026-10-30

LOOSER CONDITIONSIN LINE WITH TARGETTIGHTER CONDITIONS

STATUTORY BENCHMARK

0.50%Unchanged (0 bps)

Uncollateralized Overnight Call Rate

REAL CARRY SPREAD (r - π)

-1.80%

Accommodative Stimulus

OVERNIGHT BENCHMARK (TONAR)

0.45%-5 bps

Tokyo Overnight Average Rate

YIELD CURVE SLOPE (10Y - r)

+0.57%

Normal Upward Slope

WAGES & PRICES2 METRICS

Headline CPI Inflation (YoY)Oct 2024 Core CPI

Anchored within standard statutory price stability corridor

Statistics Bureau of JapanRef

2.30%

LOOSER

Distance to Inflation Target (2.0%)Oct 2024 Core CPI

Headline inflation exceeds 2% anchor by 0.30 percentage points

Statistics Bureau of JapanRef

+0.30%

LOOSER

SUPPLY & DEMAND2 METRICS

Annual Real GDP Growth RateQ3 2024 (Annualized)

Sluggish real economic momentum

Cabinet Office of JapanRef

0.90%

MILD TIGHT

Unemployment Rate (Labor Slack)Sep 2024

Tight labor market conditions with minimal civilian slack

Ministry of Internal Affairs and CommunicationsRef

2.50%

LOOSER

FINANCIAL CONDITIONS4 METRICS

Uncollateralized Overnight Call RateCall Rate Target

Official statutory policy target rate set by Bank of Japan

Bank of Japan (BoJ)Ref

0.50%

MILD TIGHT

Real Carry Rate (Policy - CPI)Calculated

Negative real rate stance subsidizing borrowing costs

Bank of Japan vs Statistics Bureau of Japan

-1.80%

TIGHTER

10-Year Sovereign Benchmark Yield10-Year JGB

Long-term sovereign borrowing benchmark discounting term premium & inflation risk

Ministry of Finance JapanRef

1.07%

LOOSER

Yield Curve Slope (10Y - Policy Rate)Calculated

Upward-sloping normal term structure (+0.57%)

Sovereign Debt Desk vs Central Bank Target

+0.57%

LOOSER

EXTERNAL & FISCAL2 METRICS

Current Account / Trade BalanceOct 2024 Goods

Trade deficit requiring external capital inflows or debt financing

Ministry of Finance JapanRef

$-3.1B

IN LINE

General Government Debt / GDP2024 General Government

High public debt burden consuming fiscal policy maneuverability

IMF Fiscal MonitorRef

254.60%

TIGHTER

HISTORICAL RATE DECISION TRAJECTORY (UNCOLLATERALIZED OVERNIGHT CALL RATE)

Verified Chronological Decisions

2026-10-09

0.50%

Policy Assessment Summary: Policy rate for uncollateralized overnight call market. Next MPM decision scheduled for October 29–30, 2026.

Key Domestic Equities & Capital Markets

Major corporate champions tracked in WOWS with sovereign economic exposure

Index: Nikkei 225 (NI225)

7203• Automotive

Toyota Motor Corp

6758• Consumer Electronics & Gaming

Sony Group Corp

8306• Banking

Mitsubishi UFJ Financial

9984• Tech Investments

SoftBank Group

8035• Semiconductor Equipment

Tokyo Electron