Bank of Japan reportedly raises rates to 1.25%

A September 18, 2026 post frames Japan's reported move to a 1.25% policy rate as normalization after decades of near-free money, rather than a reason to panic. The author acknowledges that higher Japanese rates could pressure the yen carry trade and bring volatility, but also points to potential benefits: a stronger yen could reduce imported inflation, while higher rates could improve Japanese banks' lending margins.