On September 18, the Bank of Japan decided at its monetary policy meeting to raise its benchmark interest rate from 1.0 percent to 1.25 percent.

This marks a rapid pace of rate hikes by Japan’s central bank, coming just three months after the previous increase.

The decision was approved by a vote of seven in favor and two opposed among the nine policy board members.

The move’s immediate market impact is expected to be limited as markets have priced in the rate increase after US Treasury Secretary Scott Bessent called for higher interest rates and remarks by a BOJ policy board member were interpreted at signaling a rate hike.

Some market participants are speculating that another rate increase could come before the end of the year.