Japan Raises Rates to 1.25%

The Bank of Japan raised its overnight rate from 1.0% to 1.25%, effective September 24, in a 7–2 decision and said it expects to keep raising rates if its outlook holds. The move followed Wednesday’s Federal Reserve increase. U.S. conditions offered a partial offset Thursday: the 10-year Treasury yield fell to 4.93% from 5.01%, while Brent crude settled at $104.82.

For the Fly High universe, broader global tightening can keep funding costs and long-term yields firm, important for BDCs, mortgage REITs, and commercial real-estate lenders. Lower U.S. yields and oil provide some near-term refinancing and inflation relief. Policy changes affect dividend capacity only when they alter borrower or portfolio earnings; one session’s market reaction is not proof.

Watch U.S. industrial production and whether Treasury yields remain below this week’s highs.

Sources

• Bank of Japan, policy decision, September 18, 2026
• Associated Press, U.S. yields and oil, September 17, 2026
• Federal Reserve, industrial production release schedule

This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.