BOJ raises rate to 1.25% as minutes show scope for faster interest rate hikes

Indrashish Mitra - 0 min read

Last Updated: 5th November 2026 - 05:15 pm

BOJ raises key interest rate to 1.25% at 31-year high in Sept meeting. BOJ meeting minutes showed one member hinted at more rapid hikes if price gains exceeded expectations. However, there was no specific decision on next step or timing.

BOJ rate reaches 1.25% as minutes allow conditional faster hikes

The Bank of Japan raised its benchmark interest rate to 1.25% at the September meeting, which the central bank described as the highest level in 31 years.

One policymaker said the BOJ might need to accelerate rate increases if prices showed signs of rising more than expected, according to the September meeting minutes.

BOJ minutes record no need for hasty action

Another policymaker said the central bank did not need to take hasty action, as the BOJ's September meeting minutes recorded. The policymaker said monetary policy should be adjusted appropriately to prevent excessive and persistent price increases.

The minutes said policymakers remained focused on the inflation outlook, including whether price pressures would prove stronger than anticipated. The Bank of Japan said the policy shift was aimed at preventing inflation from exceeding its 2% target.

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