The Bank of Japan has raised its key interest rate to 1%, the first… (ставка · япония · банк)

The Bank of Japan has raised its key interest rate to 1%, the first time since 1995. The central bank increased the base refinancing rate from 0.75% to 1.0%.

Consensus

• The Bank of Japan increased its key policy rate to 1%
• This is the highest level since 1995
• The decision was made by a majority vote of the central bank's board
• This represents a shift away from years of negative interest rates

Points of divergence

• The Bank of Japan will stop reducing the volume of government bond purchases starting April 2027 and stabilize monthly purchases at around 2 trillion yen — vedomosti
• The Bank of Japan expects further rate hikes depending on economic conditions and inflation dynamics — vedomosti
• The central bank warned of the risk of inflation exceeding the target 2% level — vedomosti
• Market expectations suggest a 54% probability of another rate increase by October — vedomosti
• Economists believe the next rate increase could happen before the end of the year, with June's meeting potentially being a turning point — vedomosti
• The Bank of Japan's decision follows the European Central Bank's rate hike in June 2025 — vedomosti