Business · Sep 19, 2026

Bank of Japan Raises Interest Rate to 31-Year High of 1.25% Amid Inflation Concerns

The Bank of Japan raised its policy interest rate by 25 basis points to 1.25% on September 18, 2026, the highest level in 31 years, in a widely expected move driven by persistent inflation. The decision passed the nine-member board by a 7-2 vote and came just three months after the previous hike, signaling a quickening pace of monetary tightening.