Japan in September 2026: the most important developments in economy
In September 2026, Japan's economy was dominated by the Bank of Japan's rate decision and the yen. On September 18 the central bank raised its key rate to 1.25%, the highest in 31 years, in a split vote; Governor Kazuo Ueda said the policy phase had shifted. The yen fell to a two-week low after the decision, with the dollar rising above 157 yen, while the Nikkei climbed. The 10-year government bond yield had reached 3% on September 1, the first time since 1996, and wages were reported to be rising at the fastest pace since 1997. The Bank of Japan's July minutes showed policymakers debating faster rate hikes.
The currency swung widely. The yen rose past 155 per dollar on September 3 and past 152 on September 8, a seven-month high, after Japan intervened to support it; foreign reserves fell by a record 6% in the month reported on September 7. US Treasury Secretary Bessent urged the Bank of Japan to take decisive steps against the weak yen. The yen then weakened again, approaching 160 per dollar on September 24, a level that previously prompted action, and the government said it stood ready to intervene. On September 25 President Trump raised the weak yen in a summit with Prime Minister Sanae Takaichi, according to Finance Minister Katayama, and the yen rose.
SoftBank was the most prominent company story. It raised $11.1 billion in a high-yield bond sale, described as the world's largest, to fund its investment in OpenAI, drawing more than $20 billion of early interest. SoftBank also planned to repay a $40 billion bridge loan, slowed the listing of its $50 billion data centre group, and its shares fell 13 percent on September 14. Japan's financial regulator increased scrutiny of AI data center financing.
Other items were mixed. Japan's oil import bill rose 59% and refiners sought Oman crude after a Saudi pipeline shutdown. Household spending fell for an eighth consecutive month in July, and budget requests for fiscal 2027 reached a record 143 trillion yen. Tokyo stocks rose on chip and AI hopes. China imposed preliminary anti-dumping measures on Japanese semiconductor gas on September 7. A breach of a government network was reported on September 11, and the head of the operator of the Hamaoka nuclear plant was to resign over earthquake data.
by WorldBrief & Maksim Micheliov | AI-generated summary
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