{"id":63227,"date":"2026-06-16T00:08:18","date_gmt":"2026-06-16T04:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boj-hikes-rates-to-31-year-high-starlink-faces-india-data-hurdles\/63227\/"},"modified":"2026-06-16T00:08:18","modified_gmt":"2026-06-16T04:08:18","slug":"boj-hikes-rates-to-31-year-high-starlink-faces-india-data-hurdles","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boj-hikes-rates-to-31-year-high-starlink-faces-india-data-hurdles\/63227\/","title":{"rendered":"BOJ Hikes Rates to 31-Year High; Starlink Faces India Data Hurdles"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Bank of Japan (BOJ) raised its short-term interest rate to 1.00% from 0.75%<\/strong>, marking the highest level since 1995 and signaling a decisive end to decades of ultra-loose policy.<\/li>\n<li><strong>A new 2027 &quot;taper pause&quot; plan was approved<\/strong>, where the BOJ will maintain a gradual reduction of JGB purchases by <strong>\u00a5200 billion per quarter<\/strong> until March 2027, before stabilizing at <strong>\u00a52 trillion monthly<\/strong> from April 2027.<\/li>\n<li><strong>Elon Musk&#39;s Starlink is facing regulatory pushback in India<\/strong> over its use of inter-satellite laser links, with officials concerned that data could bypass domestic gateways and compromise national security.<\/li>\n<li><strong>Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) expects surging demand from India and ASEAN<\/strong> to offset stagnant growth in China over the next decade, prompting a strategic shift toward copper and lithium.<\/li>\n<\/ul>\n<h2>BOJ Reaches 1% Milestone Amid Inflation Risks<\/h2>\n<p>The Bank of Japan delivered a hawkish policy package on Tuesday, raising its benchmark overnight call rate by <strong>25 basis points to 1.00%<\/strong>. The decision, approved by a <strong>7-1 majority<\/strong>, reflects growing concern over sticky inflation and a weak yen. Policymakers warned that rising energy costs are feeding into consumer prices faster than anticipated, raising the risk of inflation consistently exceeding the <strong>2% target<\/strong>.<\/p>\n<p>The central bank also provided a long-term roadmap for its balance sheet. While it will continue to trim its Japanese Government Bond (JGB) purchases through early 2027, it rejected a proposal by board member Tamura to continue tapering beyond that point. Instead, the BOJ plans to anchor monthly purchases at approximately <strong>\u00a52 trillion starting in April 2027<\/strong> to ensure market stability.<\/p>\n<h2>Starlink\u2019s India Entry Stalled by Security Concerns<\/h2>\n<p>SpaceX\u2019s satellite internet division, Starlink, has hit a fresh regulatory hurdle in India. Indian authorities are scrutinizing the company&#39;s <strong>inter-satellite laser link (LISL)<\/strong> technology, which allows satellites to transmit data directly to one another. Regulators fear this mesh network could allow Indian user data to be routed through foreign gateways, bypassing local lawful interception requirements.<\/p>\n<p>The government is reportedly considering a mandate that would require Starlink to disable laser-link routing for traffic generated within India. This development comes at a sensitive time for SpaceX, as the company is reportedly preparing for a massive <strong>Initial Public Offering (IPO)<\/strong>. Security agencies have expressed additional caution following reports of Starlink terminals being used in conflict zones where the service is not officially licensed.<\/p>\n<h2>Rio Tinto Shifts Focus to India and ASEAN Growth<\/h2>\n<p>Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) Chief Commercial Officer Bold Baatar announced that the mining giant is recalibrating its long-term strategy as Chinese demand for steel remains stagnant. The company projects that <strong>strong industrial demand from India and the ASEAN region<\/strong> will be the primary driver of global commodity markets over the next ten years.<\/p>\n<p>To capitalize on this shift, Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) is redirecting its investment portfolio to prioritize <strong>copper and lithium growth<\/strong>. These expansion efforts are being funded by the company&#39;s robust iron ore profits, which remain a cornerstone of its operations even as it diversifies its geographical and mineral footprint to meet the needs of emerging Asian economies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Bank of Japan (BOJ) raised its short-term interest rate to 1.00% from 0.75%, marking the highest level 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