Japan’s interest rate hiked to 31-year high at 1.25% as inflation rises
- Posted on September 18, 2026
- By Al Jazeera
- 1 Views
- 1 min read
The Bank of Japan implements its most aggressive monetary policy shift in three decades, elevating the benchmark interest rate to 1.25% from the previous 1% level. This strategic adjustment represents a significant departure from years of accommodative policies, as policymakers aim to address persistent inflationary pressures affecting the economy. The decision underscores Japan's commitment to normalizing monetary conditions while carefully managing economic growth and financial stability in an increasingly complex global environment.
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