BOJ raises interest rates to 31-year high in widely expected move

TOKYO - The Bank of Japan raised interest rates to a 31-year high on Tuesday, a widely expected move that signalled its focus on countering inflation risks from the Middle East conflict.

At a two-day meeting that ended on Tuesday, the central bank decided to raise its short-term policy rate to 1.0% from 0.75% by a 7-1 vote.

It was the first rate increase since December and brought the BOJ's policy rate to levels unseen since 1995.

Governor Kazuo Ueda, who is hospitalised for a medical treatment, missed the meeting and did not vote. Deputy Governor Shinichi Uchida will hold a news briefing on Ueda's behalf at 3:30 p.m. (0630 GMT) to explain the policy decision.

(Reporting by Leika Kihara, Makiko Yamazaki, Kantaro Komiya and Satoshi SugiyamaEditing by Chang-Ran Kim)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 15, 2026 at 11:29 PM.