The Bank of Japan has raised its benchmark interest rate to 1.25%, according to 경향신문, marking the country's highest policy rate in 31 years. The decision was reported on Saturday, September 19, 2026.
Seoul Economic TV reported that worries about a disorderly unwinding of yen carry trades remain "limited" despite the rate increase. A yen carry trade typically involves borrowing in yen at low cost a
The rate hike has already begun to feed through to Japanese commercial lenders. 연합뉴스 reported that deposit and lending rates at commercial banks are rising in response, a move expected to increase rep
Even with higher rates, the yen has continued to weaken, according to a v.daum.net briefing, which examined the reasons behind the currency's renewed slide. 뉴시스 reported that Japanese authorities resp
The combination of a 31-year-high policy rate and a falling yen is unusual, since higher rates would normally support a currency. The reporting points to market expectations and other factors weighing
What to watch next: whether Japanese authorities move from rate checks to actual currency intervention, and how quickly higher borrowing costs pass through to household budgets.
The Bank of Japan lifted its policy rate to 1.25%, a 31-year high, as Seoul Economic TV reports limited concern over an