Bank of Japan raises rates to 31-year high, deputy chief warns of inflation and Iran risks
Nikkei Asia reports that the Bank of Japan raised its benchmark interest rate to the highest level in 31 years. The bank's deputy chief flagged persistent inflation pressure and Iran-linked energy uncertainty as core reasons for the move. The hike advances Japan's exit from near-zero rates that began in 2024.
Nikkei Asia reports that the Bank of Japan (BOJ) lifted its benchmark interest rate to the highest level in 31 years. The deputy governor cited persistent inflation and Iran-related energy uncertainty as core drivers of the decision in remarks accompanying the announcement.
The move advances the BOJ's exit from near-zero rates, a process that began in 2024. After the decision, the Nikkei 225 index briefly cleared 70,000 for the first time. Yen volatility was limited because markets had largely priced in the move, while government bond yields edged higher across the curve.
Attention now turns to the BOJ's next step. The bank will refresh its semiannual economic projections, and investors will watch wage-price dynamics, global commodity-price trajectories and the impact of the Iran situation on Japan's energy import bill. None of this is investment advice.
Read next
World Cup fans in US, Canada and Mexico face record outlays on tickets, transport and stays
Fans at the 2026 FIFA World Cup in the United States, Canada and Mexico are spending at record levels on tickets, transport and accommodation, BBC Latin America reports. Some supporters described the costs as "daylight robbery but worth it", with industry estimates putting average family outlays in the thousands of dollars. Hotels, airlines and retail are absorbing the windfall.
CNBC Fed Survey: Warsh's Fed not expected to change rates for a while
China retail sales fall for the first time since COVID lockdowns
Japan's Nikkei tops 70,000 as BOJ rate hike sparks record rally
Cooling Australian economy and Iran de-escalation set to keep RBA on hold
