Skip to main content
Trending
Enterprise aiDefense procurementEnergy policyFoldable phonesMaritime tradeConsole securityEpidemic responseMonetary policyAgentic commerceAgricultural biosecurityClinical trialsCorporate mergersCurrency defenseHumanoid roboticsVaccine safetyWest bank tensionsZero-day exploitationZoonotic spilloverAi supply chainAutonomous agentsAutonomous vehiclesData breachFighter procurementHoliday hiringHostage diplomacyIndustry layoffsParticle physicsSahel securityStroke preventionTelecom ipos

full timeline

Bank of Japan interest rate hikes

The Bank of Japan is expected to revise its fiscal 2027 core inflation forecast upward at its October meeting due to rising crude oil prices. Policymakers will likely hold the benchmark interest rate steady at 1.25%, allowing time to assess the impact of September's historic rate hike before considering further tightening in December.

LiveFactlen Newsroom· Updated

Follow Bank of Japan interest rate hikes in the Factlen app and get an alert when there is news. Get the app

The Bank of Japan is expected to hold its benchmark rate at 1.25% while revising its long-term inflation outlook.From: Bank of Japan Prepares to Lift 2027 Inflation Projections While Maintaining Policy Rates

Share this story

Where things stand

  1. Japan's Core Inflation Rises to 2.1% in September, Supporting BOJ Rate Hike Path

    Key point: Japan's core inflation accelerated to 2.1% in September, exceeding the central bank's target and reinforcing expectations for further interest rate hikes.

    Japan's core consumer price index, which excludes fresh food, rose to 2.1% in September, marking its highest level this year. The reading topped the Bank of Japan's 2% target for the first time in nine months and matched forecasts from economists.

    The acceleration in inflation bolsters the case for the central bank to continue its path of monetary tightening, with markets widely anticipating another interest rate hike by December. Ahead of its upcoming policy decision, the BOJ is expected to maintain current rates while potentially raising its inflation forecast.

    Sources:

Charts, maps and images

The BOJ raised its policy rate to 1.25% in September 2026, the highest level in 31 years.From: Bank of Japan Prepares to Lift 2027 Inflation Projections While Maintaining Policy Rates ·
The central bank is preparing to revise its fiscal 2027 core inflation forecast upward due to rising crude oil prices.From: Bank of Japan Prepares to Lift 2027 Inflation Projections While Maintaining Policy Rates ·
The yen remains vulnerable to shifts in global energy prices and central bank policy divergence.From: Bank of Japan Prepares to Lift 2027 Inflation Projections While Maintaining Policy Rates ·
The Bank of Japan's benchmark policy rate reached 1.25% in September 2026, marking the fastest pace of monetary tightening since 1990.From: Bank of Japan Governor Ueda Signals Urgent Need to Check Accelerating Inflation ·
Market participants currently price in a 75% probability of a rate hike at the BOJ's December meeting.From: Bank of Japan Governor Ueda Signals Urgent Need to Check Accelerating Inflation ·
The yen rebounded below the 158-per-dollar mark following the disclosure of US political pressure.From: US Pressure on Weak Yen Intensifies Intervention Threat After JPY Passes 158 ·
Show 8 more
Japan's benchmark interest rate has climbed to its highest point in 31 years following a prolonged era of zero and negative rates.From: Bank of Japan Raises Policy Rate to 1.25%, Highest in 31 Years ·
Japan's benchmark interest rate history, showing the prolonged era of zero and negative rates ending with the recent spike to 1.0%.From: Bank of Japan Hikes Policy Rate to 1.0%, Highest Level Since 1995, Signaling End of Decades-Long Deflation ·
The Bank of Japan is facing pressure to raise its benchmark policy rate at an appropriate pace to prevent an inflation overshoot.From: Japanese Prime Minister Takaichi Rejects Blame for Weak Yen and Rising Borrowing Costs ·
The central bank exited its negative interest rate policy in March 2026 as underlying inflation approached its target.From: Bank of Japan Governor Ueda Signals Urgent Need to Check Accelerating Inflation ·
The yen's valuation plays a critical role in domestic price stability by affecting the cost of imported energy and raw materials.From: Bank of Japan Governor Ueda Signals Urgent Need to Check Accelerating Inflation ·
Currency traders are weighing the persistent US-Japan yield gap against the rising threat of a coordinated state intervention.From: US Pressure on Weak Yen Intensifies Intervention Threat After JPY Passes 158 ·
Japanese consumers are facing increased living costs as a weak yen drives up the price of imported food and energy.From: Bank of Japan Raises Policy Rate to 1.25%, Highest in 31 Years ·
The yen's historic weakness against the U.S. dollar has been a primary driver of imported inflation in Japan.From: Bank of Japan Hikes Policy Rate to 1.0%, Highest Level Since 1995, Signaling End of Decades-Long Deflation ·

Timeline

October 2026

  1. Japan's Core Inflation Rises to 2.1% in September, Supporting BOJ Rate Hike Path
    1. Japan's Core Inflation Rises to 2.1% in September, Supporting BOJ Rate Hike PathKey point: Japan's core inflation accelerated to 2.1% in September, exceeding the central bank's target and reinforcing expectations for further interest rate hikes.
  2. Bank of Japan Prepares to Lift 2027 Inflation Projections While Maintaining Policy Rates
  3. Japanese Prime Minister Takaichi Rejects Blame for Weak Yen and Rising Borrowing Costs
  4. Bank of Japan Governor Ueda Signals Urgent Need to Check Accelerating Inflation

September 2026

  1. US Pressure on Weak Yen Intensifies Intervention Threat After JPY Passes 158
  2. Bank of Japan Raises Policy Rate to 1.25%, Highest in 31 Years

August 2026

  1. Bank of Japan Hikes Policy Rate to 1.0%, Highest Level Since 1995, Signaling End of Decades-Long Deflation