Bank of Japan Raises Interest Rates to Highest Level Since 1995 The Bank of Japan raised its benchmark interest rate to approximately 1 percent, the highest level since 1995. This decision was driven by broadening inflation pressures and increasing energy costs. Policymakers are evaluating the economic impact of ongoing Middle East conflict, which has affected energy supplies and oil prices.

• Japan’s central bank increased its benchmark interest rate to about 1 percent.
• This is the highest interest rate in Japan since 1995.
• The decision is a response to rising inflation and energy costs.
• The central bank is monitoring the economic impact of the Middle East conflict on energy supplies and oil prices.