Bank of Japan Lifts Key Rate to 1.25%, 30-Year High

Japan's central bank lifted its key interest rate from 1% to 1.25% on September 18, the highest since 1995, continuing gradual tightening — higher borrowing costs — after ending negative rates in 2024. The step was widely expected, and analysts foresee more increases. It suggests Tokyo is confident inflation will hold while checking how much markets can handle.