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Japan's central bank raises benchmark interest rate to 1.25%

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Japan's central bank raises benchmark interest rate to 1.25%
News

News

Japan's central bank raises benchmark interest rate to 1.25%

2026-09-18 12:01 Last Updated At:12:10

TOKYO (AP) — Japan’s central bank on Friday raised the benchmark interest rate to 1.25% from 1.0%, a 31-year-high.

The Bank of Japan has been trying to normalize monetary policy after decades of keeping interest rates near or below zero to try to encourage more borrowing and spending to counter deflation and pull Japan's economy out of the doldrums. Inflationary pressures are rising because of the war in Iran, which has sent oil prices soaring in recent months. That is a big negative for resource-poor Japan, which virtually imports all its oil.

The rate increase, coming at the end of the two-day monetary policy board meeting, was expected, widely figured into recent global markets.

The raise comes after the U.S. Federal Reserve also raised its key rate this week. It raised its benchmark interest rate Wednesday for the first time since 2023 in an effort to quell stubbornly high inflation.

The U.S. has also been pressuring Japan to raise rates because of concerns about the weakening yen. Analysts say the Bank of Japan could raise interest rates another time later this year, or possibly early next year.

The nations intervened together recently to prop up the yen. The U.S. dollar is trading at about 155 yen. It reached above 160 yen earlier this year.

The Bank of Japan has set a target inflation rate of about 2%. Inflation is about that now in Japan, although some consumers complain that the recent surge in prices is too much, especially in gas and oil-related products.

Tokyo's benchmark Nikkei 225 rose after the Bank of Japan decision was announced.

Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

BOJ Gov. Kazuo Ueda arrives the central bank's headquarters in Tokyo, Sept. 18, 2026. (Japan Pool/Kyodo News via AP)

BOJ Gov. Kazuo Ueda arrives the central bank's headquarters in Tokyo, Sept. 18, 2026. (Japan Pool/Kyodo News via AP)

Japanese Prime Minister Sanae Takaichi holds a press conference after a cabinet reshuffle at the prime minister's office in Tokyo, Thursday, Sept. 17, 2026. (Rie Kikuchi/Pool Photo via AP)

Japanese Prime Minister Sanae Takaichi holds a press conference after a cabinet reshuffle at the prime minister's office in Tokyo, Thursday, Sept. 17, 2026. (Rie Kikuchi/Pool Photo via AP)

CINCINNATI (AP) — The Los Angeles Dodgers clinched their fifth consecutive NL West division title and 13th in the 14 seasons, sparked by four hits from Kyle Tucker that included a first-inning home run in an 8-2 win over the Cincinnati Reds on Thursday.

The two-time World Series champions already were assured of their 14th straight postseason appearance, trying the record Atlanta set from 1991 to 2005. Los Angeles (93-60) had clinched no worse than a wild-card berth on Monday.

Los Angeles opened a 9 1/2-game lead over second-place San Diego and has the second-best record in the NL as they try to overtake Milwaukee (95-57 entering Thursday) for the top NL seed. The division clinching was the fourth earliest for the Dodgers after Sept. 10 in 2019, Sept. 13 in 2022 and Sept. 16 in 2023.

Tucker fell a triple short of the cycle and had three RBIs, hitting a single and a pair of doubles. He hit his 16th homer, a two-run drive in the first off Brady Singer, who allowed seven runs, nine hits and four walks in 3 1/3 innings.

Freddie Freeman’s sacrifice fly and Tucker’s RBI double boosted the lead in the second, and the Dodgers opened a 7-0 lead in the fourth on Max Muncy’s two-run double and Josue De Paula’s RBI single.

Dodger left-hander Justin Wrobleski, making his 22nd start this season and first since Sept. 6, did not allow a baserunner in three innings while striking out three.

Wrobleski and Blake Treinen combined to retire their first 11 batters before Sal Stewart’s 32nd homer.

Landon Knack (1-0) allowed four hits over four scoreless innings for his first big league win since May 31 last year.

PIRATES 7, BREWERS 4

PITTSBURGH (AP) — Konnor Griffin hit a two-run single to key a five-run second inning and Henry Davis tacked on a two-run homer to lead Pittsburgh over the NL Central champion Milwaukee.

Milwaukee, a major league-best 95-58, leads the Los Angeles Dodgers by two games for the top NL seed and holds the tiebreaker.

Pittsburgh (76-77) is closing in on missing the playoffs for the 11th consecutive season. Since 1992, the Pirates’ only postseason appearances were from 2013-15.

Griffin’s opposite-field liner to left to put the Pirates ahead 2-1. Oneil Cruz followed with a two-run single and Brandon Lowe was hit by a Kyle Harrison pitch with the bases loaded.

Bo Naylor hit into a run-scoring forceout in the sixth and had a solo homer in the eighth off Luke Weaver that followed Sal Frelick’s sacrifice fly.

Davis homered in the eighth against Andy Ashby.

RAYS 10, ATHLETICS 1

ST. PETERSBURG, Fla. (AP) — Drew Rasmussen pitched five scoreless innings and Tampa Bay opened a five-game AL East lead with a win over the Athletics that extended its winning streak to six.

Liam Hicks, Chandler Simpson, Richie Palacios and Taylor Walls had two RBIs each for the AL-best Rays (93-59), who are assured of no worse than a wild card and are nearing their first AL East title since 2021. Simpson hit a go-ahead, two-run single in a six-run fourth.

Tampa Bay took three games from the A’s in its 16th series sweep, the most by an team since the 2022 Los Angeles Dodgers had 16. The Rays have 10 games left, including a four-game series next week at the second-place New York Yankees. They have won 10 of 12 and 16 of 23, moving 34 games over .500 for the first time since the end of the 2023 season.

Simpson had two hits and raised his batting average to an AL-best .311. He stole two bases, raising his AL-high total to 44.

PADRES 9, ROCKIES 2

DENVER (AP) — Xander Bogaerts homered and had an RBI triple during a seven-run second inning to help San Diego beat reeling Colorado.

Bogaerts finished a single shy of the fourth cycle in Padres history. He had two chances but struck out looking in the sixth and swinging to lead off the ninth.

His big game was part of a 15-hit afternoon for the Padres, who took three of four from Colorado. San Diego moved four games ahead of idle Arizona for the last National League wild-card spot.

Michael King (12-9) settled in after giving up a leadoff triple to Jake McCarthy and a run-scoring single to Connor Norby. King went six innings and allowed two runs in his staff-leading 31st start of the season.

Dustin Harris had three singles and drove in three runs to help the Padres win for the 10th time in 11 games. They finished with eight extra-base hits.

Colorado’s Tanner Gordon (1-5) allowed 10 hits and seven runs over three innings. His rough outing extended a streak of a Rockies starter failing to notch the win to 20 games.

ASTROS 6, ROYALS 2

HOUSTON (AP) — Yordan Alvarez hit his 40th home run, one of five Houston long balls, and the Astros beat Kansas City to move back over .500 and maintain at least a share of the AL West lead.

Jeremy Peña hit a first-inning homer for Houston, and Daulton Varsho, Lamonte Wade Jr. and Taylor Trammell also had solo home runs as the Astros hit a season-high five.

Houston (77-76), which has held at least a share of first since July 31, moved back into sole possession of the lead when Texas (76-77) wasted a eighth-inning lead in a 4-3 loss to Boston. The Astros hold the tiebreaker.

Peña reached 20 homers for the first time since his rookie season in 2022, connecting on the first pitch from Seth Lugo for his sixth leadoff home run this season. . Peña added an RBI single in the sixth.

Varsho homered in the second, and Wade and Alvarez in a three-pitch span in the fifth. Alvarez is one home run behind Tampa Bay’s Junior Caminero, the AL leader.

Bryan King (3-5) retired four straight batters. Ethan Pecko entered to start the third and allowed one run and three hits over 5 2/3 innings, retiring 15 of his first 16 batters.

Josh Hader pitched a 1-2-3 ninth, finishing a three-hitter and lowering his ERA to 0.83.

PHILLIES 3, METS 0

NEW YORK (AP) — Aaron Nola allowed three hits over seven innings and Philadelphia beat the Mets to tie the Chicago Cubs for the top NL wild card in a game interrupted by a scary collision that led to New York first baseman Jared Young being carted off the field.

Young was knocked down when pitcher Nolan McLean struck him on the head with a knee when the two converged for Justin Crawford’s slow grounder in the sixth. Young was motionless on the field after the collision and taken to a hospital. New York manager Andy Green said a CT scan was negative and Young had concussion symptoms.

Nola (7-10) didn’t allow a hit until Nick Morabito singled with one out in the sixth. He struck out four and walked three, improving to 4-2 with a 2.07 ERA in his last 10 starts.

Jonathan Bowlan got two outs in the eighth before exiting due to right groin tightness with a 2-2 count on Francisco Lindor. Jhoan Duran pitched a one-hit ninth for his 32nd save in 34 chances, finishing the Phillies’ major league-high 19th shutout.

Philadelphia is 85-68, the same as the Cubs. The Phillies closed within four games of NL East-leading Atlanta (89-64).

WHITE SOX 3, TIGERS 1

CHICAGO (AP) — Munetaka Murakami hit his team-leading 32nd home run and Chicago moved into a tie with idle Cleveland for first place in the AL Central with a win over Detroit.

Bryan Hudson (5-4), the second of four White Sox pitchers, got four outs for the win. Grant Taylor went the final 2 1/3 innings for his ninth save.

Chicago rebounded from a 6-3 loss at Cleveland on Wednesday that knocked them out of a share of first for the first time since July 4. Both the Guardians and White Sox are 78-75.

The White Sox are trying to become the first team in MLB history to make the postseason after losing 100-plus games in each of the previous two seasons.

Gleyber Torres drove in the Tigers’ run in the third inning on a fielder’s choice.

Murakami’s three-run homer, a 423-foot three-run drive to center in the first, was just the Japanese rookie’s third in his last 28 games. He launched the first pitch he saw, a high sinker from Framber Valdez.

Murakami also had a triple and struck out twice and is batting .111 in his last 28 games.

White Sox starter Erick Fedde allowed one run on four hits in 4 2/3 innings. He struck out six, walked two and hit a batter before Hudson relieved.

Valdez (10-11) yielded three runs on three hits in five innings. He struck out eight and walked four.

RED SOX 4, RANGERS 3

ARLINGTON, Texas (AP) — Trevor Story hit a three-run home run off All-Star closer Jacob Latz in the eighth inning, capping a comeback from a three-run deficit as Boston beat Texas and dropped the Rangers out of the AL West lead.

Texas (76-77) had won four straight games to gain a share of the lead but dropped one game behind Houston (77-76), which holds the tiebreaker. The Rangers trail by two games for the last AL wild card.

Boston (83-70) has a five-game lead for the top AL wild card and improved to 8-59 when trailing after seven innings. Texas dropped to 63-2 when leading after seven innings.

Latz (3-3) entered after Wilyer Abreu walked starting the eighth and Willson Contreras was hit by a pitch from Jakob Junis.

Latz struck out Adley Rutschman and Story, who is from nearby Irving, reached down for Latz’s second straight low curveball and drove the ball over the left-field wall for his fourth home run this season.

Boston’s Wyatt Olds (2-0) got three outs and Garrett Whitlock pitched the ninth for his fourth save in eight chances, getting Jake Burger to ground into a game-ending double play.

Los Angeles Dodgers President Andrew Friedman celebrates with the team after clinching the playoffs during a baseball game against the Cincinnati Reds on Thursday, Sept. 17, 2026 in Cincinnati. (AP Photo/Tanner Pearson)

Los Angeles Dodgers President Andrew Friedman celebrates with the team after clinching the playoffs during a baseball game against the Cincinnati Reds on Thursday, Sept. 17, 2026 in Cincinnati. (AP Photo/Tanner Pearson)

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