Bank of Japan raises rate by 25 bps to 1%

The Bank of Japan (BoJ) announced Tuesday a 25-basis-point increase in its short-term interest rate, bringing it to 1%, matching market expectations. The decision concluded the central bank's two-day monetary policy meeting.

This move marks the BoJ's continued normalization of policy, though the hike was fully anticipated by economists and traders. The rate adjustment is the latest step away from the ultra-loose stance the BoJ maintained for years.

No further guidance on the future pace of tightening was provided in the initial statement.