Bank of Japan raises policy rate to 1% – first hike in 31 years

The Bank of Japan (BOJ) increased its policy interest rate to 1.0% from 0.75% at its monetary‑policy meeting on June 16, marking the first rate hike since 1995, roughly 31 years ago.

The decision was taken without Governor Kazuo Ueda, who remains hospitalized, and Deputy Governor Shinichi Uchida will hold a press conference to explain the move. BOJ cited rising inflation pressures – the consumer price index rose 2.8% year‑on‑year in April and a corporate goods price index jumped 6.3% in May – as well as higher oil prices linked to Middle‑East tensions. In tandem, the central bank said it will stop the planned reduction of Treasury‑bond purchases starting next April, aiming to support market stability.