BoJ Hikes Rates to 30-Year High 0.75%, Signals Policy Normalization

• Bank of Japan (BoJ) raised its key policy interest rate by 25 basis points to 0.75%.
• This marks the highest interest rate level for Japan since 1995, a 30-year high for the benchmark short-term rate.
• The move signals further normalization of BoJ's ultra-loose monetary policy, with potential for more hikes if economic outlook remains stable.
• It's BoJ's first rate hike since 2024 (first in 17 years), following inflation stabilizing above its 2% target.
• Aims to support the weak yen (near 156 per dollar), which has increased import costs and squeezed household budgets.

Why It Matters: BoJ ends ultra-loose policy era with a significant rate hike, aiming to stabilize economy and yen.