Bank of Japan Hikes Rates to 30-Year High; Yen Weakens

• Bank of Japan (BoJ) raised interest rates by 25 basis points, bringing the overnight call rates to 0.75%.
• This decision marks the highest interest rate level in Japan in the last 30 years.
• BoJ stated that despite the hike, real interest rates are likely to remain largely negative.
• Further rate increases are anticipated if the outlook for economic conditions and inflation materializes, driven by rising wages and prices.
• Following the announcement, the Japanese Yen weakened further, slipping to its lowest level in intra-day trading.

Why It Matters: BoJ raises rates to a 30-year high, signaling future hikes as Yen weakens.