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BOJ raises interest rates to 31-year high in widely expected move

The move follows renewed yen weakness and inflation pressures that are raising import costs and straining government finances, economists said.

  • On Tuesday, the Bank of Japan raised its policy rate to 1%, the highest level in over 30 years, accelerating policy normalization that began in 2024.
  • After splashing out 11.7 trillion yen on intervention operations in May, the yen weakened again, remaining at the 160 level throughout June.
  • BOJ Governor Kazuo Ueda indicated the hike earlier this month, citing "spillover effects of inflations stemming from higher crude oil prices," while headline inflation reached 1.4%, below the 2% target.
  • "Intervention without changing domestic monetary policy is like tapping the brake," Jesper Koll, expert director at Tokyo-based Monex Group, told CNBC; Prime Minister Sanae Takaichi enacted a 3 trillion yen budget to support households.
  • A weak yen increases imported inflation, pressuring government finances as Japan navigates inflation partly fueled by the Iran war, with low inflation figures reflecting policy measures like removing gasoline taxes.
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134 Articles

Arizona Daily SunArizona Daily Sun
Lean Left

Japan raises rates to 31-year high to ward off war inflation

The Bank of Japan joined other major global central banks in raising interest rates to head off an expected spike in inflation fueled by higher energy costs from the war in the Middle East.

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QuartzQuartz
Center

Bank of Japan raises interest rates to a 31-year high as inflation and a weak yen pile on pressure

The BOJ lifted its policy rate to 1% on Tuesday, the first time it has reached that level since 1995, in a 7-1 board vote

·New York, United States
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Le FigaroLe Figaro
Lean Right

Tensions in the Gulf: Bank of Japan Raises Interest Rates to an Unprecedented Level in 30 Years

The policy rate has been raised to 1 per cent, a threshold not reached since 1995, aimed at curbing the weakening of the yen and inflation fuelled by the war in the Middle East.

·Paris, France
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IBTimesIBTimes
Center

Japan Raises Interest Rates To 31-Year High As War-Driven Energy Costs Fuel Inflation Concerns

Japan's central bank raised interest rates to their highest level in more than three decades, tightening monetary policy as the country grapples with inflationary pressures.

·United States
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CGTNCGTN
Lean Left

Japan's central bank hikes policy rate to 31-year high of 1.0%

The Bank of Japan (BOJ) decided Tuesday at its two-day monetary policy meeting to raise its benchmark interest rate to 1.0% from 0.75%, the highest in 31 years.

·Beijing, China
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Dnevni list DanasDnevni list Danas
Lean Left

Japan Central Bank Podigla Kamatnu Stopu Na Najviši Nivo U Poslednjih 30 Godina

Banka Japana (BoJ) has taken over the current situation, and it is now up to the bank to do so.

·Belgrade, Serbia
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  • 38% of the sources lean Right
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Reuters broke the news in New York, United States on Tuesday, June 16, 2026.
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