Bank of Japan lifts rates to 0.25%

The Bank of Japan BOJ has raised short-term policy interest rates from 0-0.1% to 0.25% and will reduce monthly bond buying to 3 trillion $19.6 billion from the current 6 trillion as of Q1 2026.

The decision was taken at a two day meeting on July 30 and July 31, and was voted in favour of by 7-2 by the BOJ’s board. It is a significant move for the global currency market and came after Japan managed to quell the threat of deflation, and comes after its first rate hike earlier this year in March when the bank raised rates for the first time since 2007.