BOJ Hikes Rates to 31-Year High Amid Inflation Concerns

The Bank of Japan (BOJ) raised its policy rate to a 31-year high on September 18, 2026. The move follows similar actions by European and US central banks in response to global inflation risks.

BOJ Governor Kazuo Ueda signaled that the bank's focus has shifted from pushing prices up to target to guarding against an inflation overshoot.

The BOJ raised its policy rate to 1.25% from 1%, with two dovish board members dissenting from the decision.