Bank of Japan raises interest rate to 1.25%, highest since 1995

Clash Report said on September 18, 2026, that the Bank of Japan raised its key interest rate from 1% to 1.25%, the highest level since 1995. Sino Market reports that the bank signaled further increases as economic, price and financial conditions warrant, with no preset timing or pace. It also says the bank warned that oil prices, exchange-rate moves and AI-driven demand were raising the risk of underlying inflation exceeding its 2% target.