A policy rate increase to 1.25% was made by the Bank of Japan in September 2026. This change may have varying effects on households.

The impact is expected to differ significantly across age groups. Younger households may experience growing mortgage burdens, while older households with assets could see benefits from increased interest income.

Further details on the potential effects of the rate hike are available, including how it may affect different demographics. The decision was made amid growing demands for higher interest from the US.