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

A post shared September 18, 2026, says the Bank of Japan raised its benchmark rate by 25 basis points—a quarter of a percentage point—to 1.25%, the highest in 31 years. It argues that the move reduces the advantage of borrowing cheaply in yen to invest elsewhere and gives Japanese institutions an incentive to sell foreign assets and bring capital home.