Bank of Japan raises interest rates to 1%, highest level since 1995

—The Bank of Japan raised its key interest rate to 1%, the highest level since 1995, citing persistent inflation pressures in the Japanese economy. The move marks a significant shift in Japan's monetary policy after decades of ultra-low or negative rates. AP cited inflation as the primary driver of the decision. The BBC noted this is the highest rate Japan has seen in 31 years, signaling the BOJ's confidence that price growth has become durable enough to warrant sustained tightening.