InternationalTuesday, 16 June 2026·The Hindu - International
Bank of Japan raises benchmark rate to 1% in June 2026, a 31-year high
The Bank of Japan raised its benchmark rate to 1% on June 16, 2026, citing inflation, a weak yen and higher oil prices.
Key highlights
Direct fact
On June 16, 2026, the Bank of Japan raised its benchmark uncollateralized overnight rate to 1%, the highest level in 31 years, as inflationary pressure and a weak yen continued to affect Japan.
Key specifics
- The rate was increased by 0.25 percentage point from 0.75% to 1%.
- The Bank of Japan has kept rates near or below zero for decades to fight deflation.
- The yen had fallen to about 160 per U.S. dollar before the decision.
- BOJ Governor Kazuo Ueda did not attend the June 16, 2026 policy board meeting.
- Deputy Governor Shinichi Uchida was expected to take the news conference in Ueda’s place.
Exam lens
Question type: international economy and central banking, rate hike, 1%, 0.75%, 31-year high and 160 yen per dollar are the key facts; TNPSC may ask which central bank raised rates in June 2026 and why.