Japan's central bank has raised interest rates from 1% to 1.25%, marking the highest level in 31 years, in an effort to combat rising global inflation linked to the war in Iran.

US · 2026-09-18

1. Step 1 · The triggerThe Bank of Japan raises its policy rate to 1.25%, tightening Japanese monetary conditions.
2. Step 2 · Knock-onThe yen strengthens and global investors reallocate, lifting US Treasury yields and the dollar cost of imports.
3. Step 3 · Reaches youUS SMEs face higher input costs for imports and increased floating-rate debt expenses, squeezing margins and cash flow.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: The Guardian Business

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.