Bank of Japan Raises Rate by 25 bps to 1% as Expected

The Bank of Japan (BoJ) announced a 25-basis-point rate hike, bringing the short-term interest rate to 1%. The decision was widely anticipated by markets and follows the central bank's two-day monetary policy review.

This marks a continued normalization of monetary policy as the BoJ gradually moves away from ultra-loose settings. No further guidance was provided in the initial announcement.