BOJ Rate Hike Overshadowed by Dovish Dissents

The Bank of Japan (BOJ) has delivered its expected 25 bps rate hike, taking its policy rate to a 31-year high of 1.25%.

However, the market's reaction suggests that the rate hike was not the most important part of the decision.

The focus has shifted towards the 7-2 vote, with two dissenting voices introducing a more dovish spin to the BOJ message of gradual policy normalisation.

BOJ governor Kazuo Ueda is now under scrutiny ahead of his press conference later today, as he tries to address concerns about the path ahead.