Japan's central bank (BOJ) raised its policy interest rate to 1.25%, marking the highest level in 31 years and a critical milestone: Japan's rate now exceeds Thailand's 1.00% for the first time since Thailand adopted its policy rate framework in 2000. This shift reflects accelerating global monetary tightening – the Fed and ECB have also recently raised rates – and leaves Thailand with the world's second-lowest rate after Switzerland (0.00%). For Thai SMEs and exporters, this widening interest rate differential may pressure the baht, affecting import costs and export competitiveness.