Japan's central bank raises policy rate to 31-year high
Pressure has been mounting on Japan from the US to raise interest rates amid concerns over the weakening yen.
Japanese Prime Minister Sanae Takaichi holds a press conference after a cabinet reshuffle at the Prime Minister's Office in Tokyo on Thursday (17 Sept 2026). Photo: Collected
Japan's central bank today (18 September) raised its benchmark interest rate to 1.25% from 1.0%, the highest level in 31 years.
The move, which came at the end of a two-day monetary policy board meeting, was widely expected and had been largely priced into global markets.
The 0.25-percentage-point increase in the policy rate comes after the US Federal Reserve also raised its key rate this week.
Keep updated, follow The Business Standard's Google news channel
Pressure has been mounting on Japan from the US to raise interest rates amid concerns over the weakening yen.
The two countries recently intervened jointly to support the yen.
The US dollar is trading at around 155 yen.
