BOJ raises rates to 1.25%, highest since 1995, to curb inflation
The Bank of Japan raised its target rate from 1% to 1.25%, the highest since 1995, citing high global inflation linked to the war in Iran. This follows similar tightening by the US Federal Reserve and ECB, marking a continued global monetary policy shift. The move signals a decisive break from Japan's long-standing ultra-loose policy, with implications for yen strength and global bond yields.
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BOJ Raises Rates to 1.25%, Highest Since 1995, Amid US Pressure
The Bank of Japan (BOJ) has raised its target interest rate to 1.25%, the highest level since 1995, in a decisive shift from its ultra-loose monetary policy. This move is confirmed by multiple high-confidence sources and is attributed to global inflation, aligning with tightening by the US Federal Reserve and ECB. US Treasury Secretary Scott Bessent reportedly exerted pressure for this hike, adding a geopolitical dimension to the decision.