Bank of Japan Hikes to 1.0% — Highest Rate Since 1995
The Bank of Japan raised its short-term policy rate by 25 basis points to 1.0%, a level not seen since 1995, citing persistent inflation pressure driven largely by elevated energy prices. The move was broadly anticipated by markets, and Japanese equities rallied in response, with the Nikkei reaching a record high. Asian tech shares also extended gains from the prior session.
A tightening Bank of Japan tightens the carry trade — where investors borrow cheap yen to buy higher-yielding assets elsewhere — which can force unwinding in global equities, bonds, and crypto simultaneously. Japanese equity investors face a dual dynamic: a stronger yen headwind for exporters but a signal that the domestic economy is healthy enough to absorb higher rates. Currency-hedged Japan ETFs and financials stand to benefit while export-heavy names face margin pressure.
Next Bank of Japan policy meeting (~late September). US CPI inflation report (~mid-August). Federal Reserve FOMC meeting (September 16-17).
- Live: Japan policy rate rises to 1% for first time since 1995, Asia opens flat · Het Financieele Dagblad
- Bitcoin rises after Bank of Japan hikes interest rates to a 31-year high · CoinDesk
- Japan's Nikkei hits 70,000 as BOJ rate hike sparks rally · Nikkei Asia
- Dollar near 10-day lows, no respite for yen after BOJ hikes as expected · Investing.com
- Monetary policy: Bank of Japan raises benchmark rate to highest level in 31 years · Handelsblatt
- Asian Markets: Nikkei reaches record high on Bank of Japan rate hike; China mixed on weak retail sales · Seeking Alpha
- Bank of Japan raises interest rates to 31-year high · The Straits Times Business
- Bank of Japan raises rates to 31-year high of 1.0% to counter war-driven energy inflation · Seeking Alpha
- Asia stocks mixed on weak China data; Nikkei, ASX fall ahead central bank meetings · Investing.com
- Japan's Nikkei hits 70,000 as BOJ rate hike sparks rally · Nikkei Asia
- Nikkei and Topix: Asian exchanges open slightly lower after Iran rally — focus on Japan's interest rate decision · Handelsblatt
- Bank of Japan raises benchmark rate to highest level in 31 years · Manager Magazin
- Bank of Japan Raises Benchmark Interest Rate to 1% · Bloomberg
- Japan hikes interest rates to highest since 1995 to fight inflation from Iran war; Thames Water rescue in doubt · The Guardian Business
- Bank of Japan raises interest rates to 31-year high amid Iran war inflation pressures · The Guardian Business
- Bank of Japan raises benchmark rate to 1%, highest since 1995 · Le Figaro Economie
- Bank of Japan raises rates as deputy head warns of inflation risks and Iran uncertainties · Nikkei Asia
- BOJ Move 'Probably Not Enough' for Markets, Says Jane Foley · Bloomberg
- Bank of Japan raises rates to 31-year high amid inflation and weak yen pressure · Quartz
- Gulf tensions: Bank of Japan raises interest rates to unprecedented level in 30 years · Le Figaro Economie
- Bitcoin sell-off toward $60K may resume as Japan hikes interest rates · Cointelegraph
- Japan Rates Hit Three-Decade High, But No 'Meaningful Disruption' to Crypto Market · Decrypt
- Japanese interest rate reaches 1% for first time in 32 years · Het Financieele Dagblad
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