Japan just raised interest rates for the 1st time in decades

Business Dec 19, 2025

Japan's central bank bumped up its key interest rate to 0.75%—the highest it's been in 30 years.
This marks a real shift away from years of super-low rates, with the decision made by a unanimous vote after a two-day meeting.

Why does this matter?

The move shows Japan is finally seeing steady inflation amid expectations of better wage growth.
They're also predicting some economic growth, though it'll be pretty modest.

What happens next?

Markets think this could help strengthen the yen but might make loans pricier for regular people and businesses.
All eyes are now on Governor Kazuo Ueda's press conference to see if more hikes are coming, as Japan tries to keep inflation stable in a changing global economy.