Economy, Banking and Finance · 1 October 2026

Bank of Japan summary signals policy shift to preventing inflation from exceeding 2% target

Exam-focused facts from the 1 October 2026 current affairs briefing.

Key facts

  • The Bank of Japan (BOJ) affirmed in a summary of opinions from its September 17-18 policy meeting that its policy focus has shifted to preventing inflation from overshooting the 2% target.
  • The BOJ board voted 7-2 to raise the policy rate to 1.25%, the highest level since 1995.
  • The September hike came three months after the previous increase in June, the shortest interval between hikes since 1990.
  • Before the summary's release, swap contracts implied traders saw more than a 95% chance of another hike by December and around a 21% chance of an increase at the October 30 meeting.
  • A Cabinet Office representative, likely economic policy minister Minoru Kiuchi, said the board should monitor the impact of rate hikes already undertaken.

View this story in the full daily briefing

Earlier coverage selected by topic similarity to help connect developments over time.

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