BoJ Hikes Rate to 1.25%, Sets Stage for Uncertain Monetary Policy

The Bank of Japan (BoJ) has raised its policy rate by 25 basis points to 1.25%, marking the highest level in over three decades.

This decision was made despite limited guidance on the pace of further normalization, which may leave investors guessing about future monetary policy moves.

According to Governor Kazuo Ueda, underlying inflation is nearing 2% and policy has entered a 'new stage', but he also emphasized the need to avoid tightening financial conditions too quickly.