BOJ Hikes Rates, Yen Crashes Amid Faster Policy Adjustment Signal

The Bank of Japan's (BOJ) decision to raise its policy rate by 25 basis points to 1.25% has sent shockwaves through currency markets, with the Japanese yen plummeting by over 1.25%.

This marked a significant move in the BOJ's monetary policy normalization cycle, which began in March 2024.

The decision was made on a 7-2 vote, and while Governor Ueda signaled a faster pace of policy adjustment, the odds of a December move were trimmed to above 80%.