Japan Raises Interest Rates to 31-Year High Under U.S. Pressure

The Bank of Japan raised interest rates on Friday in a closely watched move that followed unusual scrutiny by the Trump administration.

Japan’s central bank moved its policy rate from 1 percent to 1.25 percent, the highest level in 31 years in a country that has long combated stagnant prices with near-zero interest rates.

Markets had widely expected the bank to raise rates at its September meeting, as prices in Japan have climbed steadily in recent years. It followed rate hikes from the Federal Reserve on Wednesday and the European Central Bank last week, as countries grapple with rising energy prices from the war in the Middle East.

U.S. Treasury Secretary Scott Bessent publicly pressured Tokyo to tighten policy. Speaking at an event in Texas last week, Mr. Bessent even suggested that he had inside knowledge of the bank’s plans to raise rates.

Article source: https://www.nytimes.com/2026/09/17/business/japan-interest-rates.html