Story perspectives

Bank of Japan Raises Rates to 1.25%

By Drooid · Sep 20, 2026, 2:25 PM UTC · How we work

Summary

Story summary

Japan's Bank of Japan (BOJ) raised its policy rate by 25 basis points to 1.25% on September 18, 2026.
The decision passed 7-2, with Toichiro Asada and Ayano Sato dissenting.
Yen fell to roughly 156.6-157 per dollar.
August headline inflation was 1.9% and core inflation 1.7%, both below the 2% target.
BOJ cited yen weakness, higher import costs and services price pressure as inflation risks.

1 of 1

Story summary

Japan's Bank of Japan (BOJ) raised its policy rate by 25 basis points to 1.25% on September 18, 2026.
The decision passed 7-2, with Toichiro Asada and Ayano Sato dissenting.
Yen fell to roughly 156.6-157 per dollar.
August headline inflation was 1.9% and core inflation 1.7%, both below the 2% target.
BOJ cited yen weakness, higher import costs and services price pressure as inflation risks.