On September 18, the Bank of Japan concluded a two-day monetary policy meeting and announced that it would raise the policy interest rate from 1.0% to 1.25%. This is another rate hike by the bank after a lapse of 3 months, which is significantly faster than the pace of raising interest rates roughly once every six months since March 2024. From a global perspective, several economies have restarted interest rate hikes in 2026. The Bank of Korea raised interest rates twice in a row in July and August, the first time since January 2023. Earlier this month, the ECB raised interest rates for the second time this year. The Bank of England has yet to follow up on interest rate hikes. On September 17, local time, the Bank of England kept interest rates unchanged for the sixth time in a row. However, the Bank of England warned that if the Middle East conflict causes further inflationary pressure, the bank may need to raise interest rates. Analysts believe that under the pressure of inflation, central banks in major economies have switched to tightening monetary policies one after another, but it is not yet certain whether they will continue to raise interest rates drastically. “The US, Europe, and Japan have raised interest rates one after another, reflecting that after the situation in the Middle East pushed up energy prices, major central banks are clearly more wary of rising inflation expectations again.” Xu Jiaqi said.

On September 18, the Bank of Japan concluded a two-day monetary policy meeting and announced that it would raise the policy interest rate from 1.0% to 1.25%. This is another rate hike by the bank after a lapse of 3 months, which is significantly faster than the pace of raising interest rates roughly once every six months since March 2024. From a global perspective, several economies have restarted interest rate hikes in 2026. The Bank of Korea raised interest rates twice in a row in July and August, the first time since January 2023. Earlier this month, the ECB raised interest rates for the second time this year. The Bank of England has yet to follow up on interest rate hikes. On September 17, local time, the Bank of England kept interest rates unchanged for the sixth time in a row. However, the Bank of England warned that if the Middle East conflict causes further inflationary pressure, the bank may need to raise interest rates. Analysts believe that under the pressure of inflation, central banks in major economies have switched to tightening monetary policies one after another, but it is not yet certain whether they will continue to raise interest rates drastically. “The US, Europe, and Japan have raised interest rates one after another, reflecting that after the situation in the Middle East pushed up energy prices, major central banks are clearly more wary of rising inflation expectations again.” Xu Jiaqi said.