Bank of Japan raises interest rates to 31-year high … of 1%

<p>Country acts amid Iran war inflation pressures, but US Fed and Bank of England expected to hold rates</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/jun/16/japan-hikes-interest-rates-inflation-iran-war-thames-water-rescue-nationalisation-latest-news-updates">Business live – latest updates</a></p></li></ul><p>The Bank of Japan (BoJ) has raised interest rates to a 31-year high as it tries to dampen inflationary pressures created by the Iran war.</p><p>Policymakers in Tokyo raised the BoJ’s short-term policy rate by a quarter of one percentage point, <a href="https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2026/k260616c.pdf">to 1% from 0.75%</a>, and warned that companies were passing on rising oil costs to each other at a “relatively fast pace”.</p> <a href="https://www.theguardian.com/business/2026/jun/16/bank-of-japan-raises-interest-rates-iran-war-inflation-us-fed-bank-of-england">Continue reading...</a>