BOJ Raises Rates to 1.25%, Signals New Phase of Tightening

The Bank of Japan raised its deposit rate to 1.25%, the highest in 31 years, and Governor Ueda stated monetary policy has entered a new phase, signaling further hikes. However, he avoided committing to a faster pace, leaving the trajectory data-dependent. This marks a clear shift from the BOJ's long-standing ultra-loose stance, with implications for global yields and the yen.