Bank of Japan lifts benchmark rate to highest level since 1995

The short version

• The Bank of Japan raised its policy interest rate by 25 basis points to 1.25%, reaching its highest point since 1995.[CNBC · BBC News]
• The decision passed with a 7-2 vote, as two dissenting board members argued against tightening while core inflation remained below 2%.[CNBC]
• Officials cited concerns that ongoing price pressures could push inflation above their 2% target, driven partly by global energy costs.[CNBC · BBC News]

Key facts

• The Bank of Japan raised its key interest rate from 1% to 1.25%, reaching a level not observed since 1995.[CNBC · BBC News]
• Board members voted 7-2 in favor of the rate hike, with Toichiro Asada and Ayano Sato casting the dissenting votes.[CNBC]
• Japan's core inflation stood at 1.7% in August, softening slightly from 1.8% in July, while headline inflation reached 1.9%.[CNBC · BBC News]
• The central bank stated the adjustment was meant to counter the risk of inflation deviating above its 2% target.[CNBC]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Japan raises interest rate to new 31-year high to curb rising pricesBBC News - Business
• Bank of Japan raises interest rates to 31-year high, flags concerns over inflationCNBC