BOJ Governor: Japan's Real Interest Rates Are Significantly Low

On May 26, 2026, Bank of Japan (BOJ) Governor Kazuo Ueda stated that Japan's real interest rates are currently at a significantly low level. The comment was made during a press conference after the BOJ released its monetary policy report, with markets closely watching for any policy shifts.

Real interest rates are nominal rates adjusted for inflation. Low real interest rates mean lower actual borrowing costs for businesses and households, but they can also pressure the yen and increase inflation risks.

Governor Ueda's assessment comes as the BOJ continues its accommodative stance. No detailed information on further policy adjustments has been provided yet.