The Bank of Japan raises its benchmark policy interest rate to 1%, the highest level since 1995, continuing a shift away from decades of ultra-low borrowing costs. The move lifts the short-term policy rate from 0.75%, according to reports. The rate increase is described as widely expected and marks the first rise since December. In its decision, the central bank points to economic and market conditions including the impact of a weaker yen and higher prices. Multiple outlets also report that the policy change is part of a broader “normalization” effort, with the bank indicating that further adjustments may follow. The decision reflects the central bank’s reassessment of the stance of monetary policy after an extended period of very low interest rates. Overall, the articles characterize the increase as a significant step in the Bank of Japan’s evolving approach to inflation and exchange-rate dynamics, while noting that additional policy moves remain possible.