Bank of Japan raises policy rate to 1.25% after September meeting
Question
Bank of Japan raises policy rate to 1.25% after September meeting
Direct answer
Higher short-end Japanese rates support JPY and pressure JGB prices, while equities with rate sensitivity face tighter domestic financial conditions.
- Original publisher
- Market Ontology
- Evidence through
- 2026-09-18
- Published
- 2026-10-20
- Revision
- 1 · 2026-10-20
Cite as: Market Ontology, “Bank of Japan raises policy rate to 1.25% after September meeting”, revision 1, evidence through 2026-09-18. https://marketontology.com/market-events/2026-09-18/bank-of-japan-raises-policy-rate-to-1-25-after-september-meeting-9ee773
How this development reaches the affected companies
| Asset | Exposure and channel | Direction | Evidence |
|---|---|---|---|
| JPY | a higher BOJ policy rate improves the yen's carry and rate-differential outlook | Up1-5d | BOJ raised the overnight call rate to around 1.25% |
| USDJPY | the yen strengthens against the dollar when Japan's policy rate rises | Down1-5d | BOJ lifted the policy rate by 25 bps |
| JGB | higher policy rates push government bond yields higher and prices lower | Down1-5d | BOJ tightened policy for the first time in this round since the last hike three months earlier |
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What happened next
| Asset | Call | Base close | +1 day | +5 days | +20 days |
|---|---|---|---|---|---|
| JPY | Upagreed | 38.98 2026-09-18 | +0.84% | +0.96% | Pending |
Closing prices from stored daily bars; returns measured from the last close on or before the event date. Not a recommendation.
Sources
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