#BOJRaisesRatesTo31YearHigh
BOJ Raises Rates to 31-Year High
The Bank of Japan (BOJ) raised its benchmark interest rate by 25 basis points to 1.25% on September 18, 2026, taking Japanese borrowing costs to their highest level since 1995. The decision passed by a 7–2 vote and marked another step in the central bank’s monetary-policy normalization. �
Reuters +1
BOJ Governor Kazuo Ueda said policymakers are increasingly focused on preventing inflation from overshooting the bank’s 2% target. Japan’s August headline inflation was around 1.9%, while core inflation eased to 1.7%, but the BOJ remains concerned about upside price risks, including those linked to the weak yen and higher import costs. �
Equiti Default +1
Interestingly, the yen weakened after the rate hike, with markets focusing on the continued interest-rate gap between Japan and the United States and uncertainty over the pace of future BOJ tightening. Ueda indicated that further increases remain possible depending on economic and inflation data. �
Reuters +1
The move represents a significant shift for Japan after decades of exceptionally low interest rates and could have implications for the yen, Japanese government bonds, global liquidity and risk assets such as equities and cryptocurrencies. �$NVDA.US $AAPL.US
BOJ Raises Rates to 31-Year High
The Bank of Japan (BOJ) raised its benchmark interest rate by 25 basis points to 1.25% on September 18, 2026, taking Japanese borrowing costs to their highest level since 1995. The decision passed by a 7–2 vote and marked another step in the central bank’s monetary-policy normalization. �
Reuters +1
BOJ Governor Kazuo Ueda said policymakers are increasingly focused on preventing inflation from overshooting the bank’s 2% target. Japan’s August headline inflation was around 1.9%, while core inflation eased to 1.7%, but the BOJ remains concerned about upside price risks, including those linked to the weak yen and higher import costs. �
Equiti Default +1
Interestingly, the yen weakened after the rate hike, with markets focusing on the continued interest-rate gap between Japan and the United States and uncertainty over the pace of future BOJ tightening. Ueda indicated that further increases remain possible depending on economic and inflation data. �
Reuters +1
The move represents a significant shift for Japan after decades of exceptionally low interest rates and could have implications for the yen, Japanese government bonds, global liquidity and risk assets such as equities and cryptocurrencies. �$NVDA.US $AAPL.US