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Bank of Japan Hikes Rates to a 31-Year High โ€” What It Means for India and Global Markets

The GuardianยทWednesday, 17 June 2026

The Bank of Japan has raised interest rates to 1%, the highest level in 31 years, citing inflation pressures driven by the Iran war. The US Federal Reserve and the Bank of England are expected to hold their rates steady for now. The move signals a global shift in how central banks are responding to war-driven inflation.

Why It Matters

When Japan moves rates, global capital flows shift โ€” that affects Indian markets, the rupee, and foreign investment into India.

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