Bank of Japan reportedly raises rates to 1.25%, a 31-year high

Polymarket said on September 18, 2026, that Japan raised interest rates to 1.25%, a 31-year high. A separate user described a 25-basis-point increase (0.25 percentage points), approved by a 7–2 vote, and called it the Bank of Japan’s second hike in three months. That user reported that the Nikkei rose while the yen briefly fell about 0.8% against the dollar, attributing the reaction to a hike already largely priced in and BOJ messaging that was less aggressive than some expected.