Bank of Japan ends decades-long ultra-low rate era, raises benchmark to 0.25%

The Bank of Japan announced on October 27, 2026, the end of its long-standing ultra-low interest rate policy, raising the benchmark rate to 0.25%. This move marks the end of a decades-long period of near-free borrowing in Japan. The decision directly increases borrowing costs across the Japanese market, affecting homeowners facing higher mortgage rates, savers seeking better returns, and businesses reliant on low-cost funding. The shift signals a significant change in Japan's monetary policy stance after years of economic stimulus.

Written with AI from the reporting · updated 10/27/2026