Story perspectives

Bank of Japan Lifts Rate to 1.25%

By Drooid · Oct 1, 2026, 3:05 PM UTC · How we work

Summary

Story summary

Bank of Japan raised its policy rate to 1.25% on September 18, a 31-year high.
Tankan survey showed manufacturers' confidence at +24, highest since March 2018.
Large non-manufacturers' sentiment fell to +35 from +37, first decline in five quarters.
Corporate inflation expectations were 2.6% in three years and 2.5% in five years, cited by Governor Kazuo Ueda.

History

Historical Context

When the Bank of Japan raised its discount rate to 0.5 % in March 1995, it broke a decade of zero-interest policy, a move echoed today as Governor Kazuo Ueda lifts rates to 1.25 %. The shift parallels Europe’s post-crisis tightening, where the ECB and De Nederlandsche Bank supervise large Dutch banks such as Rabobank, which held €593 billion in assets in 2023.

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Story summary

Bank of Japan raised its policy rate to 1.25% on September 18, a 31-year high.
Tankan survey showed manufacturers' confidence at +24, highest since March 2018.
Large non-manufacturers' sentiment fell to +35 from +37, first decline in five quarters.
Corporate inflation expectations were 2.6% in three years and 2.5% in five years, cited by Governor Kazuo Ueda.

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