BOJ Rate Hike Triggers Mixed Reactions Across Age Groups in Japan

The Bank of Japan (BOJ) has raised its policy rate to 1.25% in September 2026, marking the sixth increase since March 2024.

This decision was made under external pressure from the US, which has been urging Tokyo to end its reflationary policies and allow interest rates to rise.

The BOJ's rate hike is expected to have a mixed impact on Japanese households, with younger generations facing higher mortgage burdens and asset-rich seniors benefiting from increased interest income.

According to estimates by Mizuho Research and Technologies, the average 10-year time deposit rates are projected to rise by 0.15 points to 2.13%, while variable-rate mortgage rates are expected to increase by 0.25 points to 1.45%.