Bank of Japan raises policy rate to 1.25%, highest since 1995

TheWorldCorresp reports that the Bank of Japan raised its policy rate by 0.25 percentage points to 1.25% on September 18, 2026—its sixth hike since ending negative rates in March 2024. The account says August core inflation, excluding fresh food, stood at 1.7%, but the BOJ projected consumer-price growth above 2% in the second half of fiscal 2026. It also describes rising import prices and companies passing wage-hike costs on through sales prices.