BOJ Hikes Rates, But Fails to Keep Pace with Global Peers

The Bank of Japan (BOJ) raised interest rates as expected, but its move was seen as less hawkish than those of its peers. This led to a slight depreciation of the yen.

The decision breaks a pattern of twice-yearly rate rises and comes just three months after the BOJ last hiked rates.

However, nearly three more US interest rate hikes are priced in by mid-next year, with similar expectations for Europe and Britain. The BOJ Governor Kazuo Ueda's news conference will be closely watched to see if he can hold these expectations in place.