Bank of Japan Hikes Rates to 1.25%, Highest Level Since 1995

The Bank of Japan has raised its benchmark interest rate to 1.25%, its highest level since 1995, as it continues to tighten monetary policy in response to rising inflation.

This move marks the seventh time the bank has hiked rates this year, and it is expected to have a significant impact on global markets, particularly for crypto traders who rely on cheap yen funding.

The yen's decline to 156.9-157.1 per dollar in the wake of the decision was unexpected, but analysts note that the dovish dissents from two board members may temper expectations for future rate hikes.