BOJ Hike Leaves Yen Vulnerable to Rate Gap Uncertainty

The Bank of Japan (BOJ) raised its policy rate to 1.25%, a level it hasn't seen in decades, but the yen weakened anyway after a split vote hinted at uncertainty about what's next.

The quarter-point move from 1% to 1.25% was expected, and it fits the BOJ's effort to avoid inflation running above its 2% goal.

However, two policymakers, Toichiro Asada and Ayano Sato, dissented, making traders less confident that another hike later this year is a sure thing.