The Bank of Japan has raised its main interest rate to 1.25%, the highest level in 31 years, in an effort to combat rising inflation and align with other major economies.

UK · 2026-09-18

1. Step 1 · The triggerBank of Japan raises its main interest rate to 1.25%, strengthening the yen and lifting Japanese bond yields.
2. Step 2 · Knock-onYen appreciation and higher Japanese yields drive global investors to rebalance, raising global funding costs and making Japanese exports less competitive.
3. Step 3 · Reaches youUK SMEs sourcing from Japan or relying on global funding face higher input costs and tighter lending terms, impacting 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: BBC News — 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.