How to read the figures: "around X percent" for the policy rate is not an exact numberPlain-language (teen-friendly): the target was "about 1.0 percent," but the rate was 0.976 to 0.980 percent
On November 5, 2026, the Bank of Japan published the minutes of the Monetary Policy Meeting held on September 17 and 18, 2026. The section on how money market operations were conducted shows clearly how the policy rate should be read. The guideline in force up to that meeting was "to encourage the uncollateralised overnight call rate to remain at around 1.0 percent," yet the rate actually moved in a range of 0.976 to 0.980 percent. The guideline is a target level expressed with "around"; the actual rate moves either side of it.
Key points
- The guideline for money market operations is written as "to encourage the uncollateralised overnight call rate to remain at around 1.0 percent." It is not the rate itself but a guideline encouraging the rate to stay at that level
- According to the minutes, the rate actually moved in a range of 0.976 to 0.980 percent over the period up to the meeting — slightly off the "around 1.0 percent" in the guideline. The word "around" is what covers that gap
- The uncollateralised overnight call rate is the rate at which financial institutions lend to each other without collateral for repayment the next day, and it is the policy rate that is guided. The minutes note that over the same period the general collateral repo rate "remained at a level more or less the same as the uncollateralised call rate"
- Short-term rates that are not guided move separately. The minutes state that the three-month treasury discount bill rate "rose," and that long-term rates (the yield on ten-year government bonds) "rose" as well
- Purchases of Japanese government bonds were made at about 2.5 trillion yen a month, in line with the purchase plan decided at the June 2026 meeting
What to do in practice
- When you see a policy rate level in the news, work out whether it is the guideline decided at a meeting or the rate that actually prevailed in the market
- Check which rate your company's borrowings are linked to — those tied to an overnight rate move differently from those tied to a rate with a term, such as three months
On November 5 the Bank of Japan released the record of its September meeting. In it there is a passage about the interest rate at which money is lent and borrowed. At that time the Bank wanted the rate at which banks lend to each other for just one day to be "about 1.0 percent." In fact the rate that prevailed was between 0.976 percent and 0.980 percent. The Bank does not set the rate directly — it only points in a direction, saying "roughly this much" — so there is a small gap.
Points
- The Bank of Japan does not fix the rate at one exact number; it points in a direction, saying "make it about 1.0 percent"
- Over the period up to the September meeting, the rate that actually prevailed was between 0.976 percent and 0.980 percent
- Rates the Bank does not point at move on their own. The rate for money repaid in three months had risen
What the words mean
- Policy rate
- The interest rate for lending and borrowing money that the Bank of Japan says should be "about this much"
- Uncollateralised call rate
- The rate at which banks lend to each other without security, for repayment the next day
- Overnight
- The shortest kind of lending: borrow today, repay tomorrow
- Bank of Japan: Bank of Japan, Minutes of the Monetary Policy Meeting held on September 17 and 18, 2026
Economic news presents published statistics and outlooks. It is not investment solicitation or trading advice. Figures are as of publication and may be revised.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.