Top reasons why the Nikkei 225 Index has soared to a record high

[https://invezz.com/wp-content/uploads/2025/05/BOJ.png] The Nikkei 225 Index continued its strong surge, reaching its all-time high after Japan’s inflation softened and as the Bank of Japan left interest rates unchanged. It jumped to a record high of ¥45,652, up sharply from the year-to-date low of ¥30,745. This article explores the top reasons why the index has soared in the past few months. NIKKEI 225 INDEX JUMPED AS THE BOJ RESISTED HIKES One of the main reasons why the Nikkei 225 Index has soared this year is that the BoJ has resisted hiking interest rates despite a stubbornly high inflation rate. The continued pause is different from what happened in 2024 when the bank exited negative interest rates and delivered hikes for the first time in decades. The bank will likely maintain rates at the current level for a while as inflation has started moving in the right direction. A report released by the statistics agency showed that the headline Consumer Price Index (CPI) softened from 3.1% in July to 2.7% in August. The core CPI also moved downwards to 2.7, while inflation excluding…