TOKYO — In a move described by analysts as ‘recklessly assertive,’ the Bank of Japan stunned financial markets Tuesday by raising its benchmark interest rate to a whopping 1%—a level not seen since people still used fax machines.

The quarter-percent hike, from an already death-defying 0.75%, sent shockwaves of mild surprise across the nation. “If this keeps up, my savings account could earn almost enough interest to buy a cup of vending machine coffee by 2056,” said local salaryman Hiroshi Nakagawa as he checked his account balance for the first time since 2003.

Officials defended the decision, citing mounting inflation and rising oil prices stemming from global tensions. BoJ Governor Yasuo Tamaguchi explained, “We must act decisively. At 1%, reckless spending on second-hand Honda Civics and affordable sushi platters must be stopped before it spirals out of control.”

International observers are watching closely. “Frankly, we’re in awe of their courage,” said Marianne Tuttle, senior analyst at the Institute For Minutely Incremental Change. “If rates go any higher, Japanese citizens may have to start budgeting for interest income in their retirement plans.”

Meanwhile, Japanese banks scrambled to update their calculators to handle rates with two digits. “We didn’t even know our software could display a ‘1’ in that field,” admitted Shinya Kobayashi, Head of IT at Mizuho Bank. “This truly is a new era.”