BOJ raises rates to 1.25%, highest in 31 years, signals continued normalization
The Bank of Japan raised its policy rate from 1.0% to 1.25%, a 31-year high, in a widely expected move. This continues the BOJ's gradual exit from ultra-loose policy amid rising economic pressures. The hike reinforces a global trend of tighter monetary conditions, potentially impacting yen strength and Japanese bond yields.
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BOJ Raises Rates to 1.25%, Signals New Tightening Phase
The Bank of Japan (BOJ) has raised its policy rate to 1.25%, the highest level since 1995/31 years, marking a decisive shift from its ultra-loose monetary policy. This move signals a new phase of tightening and continued normalization, with Governor Ueda indicating further data-dependent hikes. The action aligns with global monetary tightening trends and follows pressure from the US Federal Reserve's rate increases and an unusual public campaign by US Treasury Secretary Scott Bessent.