Story perspectives

BOJ Hikes Rate to 1.25%, Two Dissenters

By Drooid · Sep 19, 2026, 6:11 AM UTC · How we work

Summary

Story summary

BOJ raised policy rate from about 1.0% to 1.25% at its Sept 18 meeting.
Two board members opposed the hike, sparking market doubts about further rate increases.
Japan’s government and the Bank of Japan conducted a rate check on Sept 18-19, signaling possible yen intervention.
The yen slipped to the 158 range, its weakest in two weeks, after the rate move.

History

Historical Context

After the 1995 BOJ rate cut that lifted the yen to roughly ¥80 per dollar, Japan saw a 22-point depreciation between 2021 and 2022; a summer 2024 rate increase then pushed the yen to nearly ¥164 per dollar, echoing the rapid appreciation triggered by the 1985 Plaza Accord. These swings have repeatedly prompted authorities to contemplate coordinated foreign-exchange intervention.

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Story summary

BOJ raised policy rate from about 1.0% to 1.25% at its Sept 18 meeting.
Two board members opposed the hike, sparking market doubts about further rate increases.
Japan’s government and the Bank of Japan conducted a rate check on Sept 18-19, signaling possible yen intervention.
The yen slipped to the 158 range, its weakest in two weeks, after the rate move.

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