Japan’s central bank hikes interest rates as tensions in the Middle East fuel inflation fears (opens original article in a new tab)

Japan's central bank increased interest rates to 1% for the first time since 1995, citing inflation and a weak yen, while also pausing bond purchase reductions to stabilize markets.

• Japan's central bank raised its benchmark interest rate from 0.75% to 1% - the highest level since 1995.
• The decision was influenced by rising inflation, a weakening yen, and instability in the Middle East affecting energy costs.
• The BOJ will halt further reductions in government bond purchases from April 2027 to maintain financial market stability.