{
  "id": 6840290,
  "title": "BOJ set to raise interest rate to 1.25% next week",
  "url": "https://urgent.news/2026/09/12/boj-set-to-raise-interest-rate-to-1-25-next-week",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-12T01:56:00.000Z",
  "source": {
    "name": "Japan Times",
    "slug": "japan-times",
    "url": "https://www.japantimes.co.jp/business/2026/09/12/economy/boj-interest-rate/"
  },
  "original_language": "en",
  "account": "The Bank of Japan intends to increase its policy interest rate to 1.25% during a meeting next week, marking the highest level in approximately 31 years, according to informed sources. The previous occurrence of this rate took place in April 1995. As present inflation nears the Bank's 2% objective, the central bank plans to raise interest rates to counter upward price pressures during the meeting commencing Thursday.\n\nWhile the Bank considers Japan's economy robust, it acknowledges rising risks to prices due to increased oil prices, a weaker yen, and growing demand driven by artificial intelligence advancements. The Bank perceives financial conditions as accommodative, with lending continuing to grow despite raising the policy rate to around 1.0% in June. If the Bank retains its current interest rate, there is a threat that prices may surpass the 2% target.\n\nHistorically, the Bank has raised its policy rate approximately once every six months. However, this latest increase will occur just three months following the June hike. At a press conference on September 2 at 10 AM Japan time, following the conclusion of the Group of 20 finance ministers and central bank chiefs meeting in Asheville, North Carolina, Bank of Japan Governor Kazuo Ueda stated, \"We’ll fully discuss (a rate increase) at every policy meeting, including the next one.\" U.S. Treasury Secretary Scott Bessent has consistently anticipated an early interest rate hike by the Bank to avoid a further depreciation of the yen.",
  "summary": "The last time the Bank of Japan's policy interest rate stood at 1.25% was in April 1995.",
  "key_points": [
    "Bank of Japan to raise interest rate to 1.25% next week",
    "Inflation nearing Bank's 2% objective, prompting rate hike",
    "Meeting begins Thursday, marking rate increase in 31 years"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}