Bank of JapanPolicy rate at highest since 1995 amid concerns of CPI exceeding 2% targetFollowing a two-day board meeting, BOJ decided to lift its policy rate by a quarter point to 1%. (Photo by Nanami Sato)June 16, 2026 12:23 JSTUpdated on June 16, 2026 20:52 JSTTOKYO -- The Bank of Japan decided on Tuesday to raise its benchmark interest rate to 1% -- its highest level in more than three decades -- as the central bank tries to stay ahead of inflation amid continued uncertainty over the Middle East conflict.