politics

Bank of Japan Raises Interest Rates to 1%, Highest Since 1995

16 Haziran 2026Japan Times

The Bank of Japan has raised interest rates to 1%, marking the highest level since 1995. This decision comes as a response to persistent inflation and a weakening yen, which have pressured the central bank to take action.
The move signals a shift in Japan's monetary policy after years of ultra-low rates.
For years, Japan has maintained low interest rates to stimulate growth, but the current economic climate of rising prices and currency depreciation has necessitated a reevaluation of this strategy. The last time rates were at this level was nearly three decades ago, indicating a pivotal moment for the country's econ…
The Bank of Japan's decision to increase interest rates reflects a significant change in its approach to managing economic challenges. With inflation rising and the yen depreciating, the central bank is prioritizing stability over the previous accommodative stance.

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