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Bank of Japan hikes rates to highest since 1995 as yen languishes at historic lows

CNBC · Jun 16, 2026, 3:56 AM

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  • Japan's central bank on Tuesday raised its policy rate to the highest in over 30 years at 1%, in line with expectations of economists polled by Reuters, accelerating policy normalization started in 2024.
  • This is the Bank of Japan's first hike since December, when it raised rates to 0.75%, and the first time since 1995 that rates have been raised to 1%.

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Japan's central bank on Tuesday raised its policy rate to the highest in over 30 years at 1%, in line with expectations of economists polled by Reuters, accelerating policy normalization started in 2024.

This is the Bank of Japan's first hike since December, when it raised rates to 0.75%, and the first time since 1995 that rates have been raised to 1%.

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