{
  "id": 8251091,
  "title": "Bank Of Japan Raises Interest Rate To 1.25%, Highest Level In Three Decades",
  "url": "https://urgent.news/2026/09/18/bank-of-japan-raises-interest-rate-to-1-25-highest-level-in-three",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T12:24:29.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/bank-of-japan-raises-interest-rate-to-125-highest-level-in-three-decades"
  },
  "original_language": "en",
  "account": "The Bank of Japan (BoJ) has increased its benchmark overnight call rate by 25 basis points to 1.25%, the highest level in over three decades, signaling a significant shift in monetary policy. The decision, approved by a 7-2 vote by the central bank's board, raised interest rates from the previous 1%. BoJ officials stated that underlying inflation in Japan was nearing its 2% target, but acknowledged that financial conditions remained favorable. While raising rates, the central bank cautioned that inflation could potentially surpass its target, emphasizing the need for ongoing monitoring of various risks. These risks include developments in West Asia, fluctuations in foreign exchange markets, and the impact of artificial intelligence on economic activity and prices. BoJ Governor Kazuo Ueda will deliver a statement on the decision, providing further insights into potential future rate hikes. This move follows a cabinet reshuffle by Japanese Prime Minister Sanae Takaichi, who emphasized the need to focus on measures to support economic growth. Despite the rate increase, the Japanese yen has faced pressure, trading at approximately 156.160 against the US dollar. This weakness was attributed to recent economic data showing Japan's August inflation falling slightly short of market expectations. However, swap market data indicated an 83% probability of another BoJ rate increase, with markets anticipating additional quarterly adjustments. The central bank's actions reflect its commitment to balancing inflation management with concerns over economic growth. Japan has moved away from its previous reliance on ultra-low interest rates, adapting to changing price trends. Meanwhile, Brent crude prices have further eased, trading below the $105 per barrel mark, providing some relief amid ongoing global inflation concerns.",
  "summary": "The Bank of Japan (BoJ) has raised its benchmark overnight call rate by 25 basis points to 1.25%, marking the highest interest rate level in the country in more than three decades. The decision, approved by a 7-2 majority vote by the central bank’s board, increased rates from the previous 1%. The BoJ said underlying inflation in Japan was approaching its 2% target, while financial conditions…",
  "key_points": [],
  "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."
}