BOJ Hikes Rates to 30-Year High: Global Markets on Alert, India to Feel Impact

• Bank of Japan (BOJ) raised interest rates to a 30-year high, increasing the overnight call rate by 25 basis points to 0.75%.
• The decision aims to combat inflation, which has been above the central bank's target for 43 consecutive months.
• This move is part of BOJ's policy normalization, following the end of negative interest rates last year.
• Global markets, including stock, bond, and currency flows, will be impacted; the Yen is expected to strengthen.
• India could see pressure on the rupee, volatility in bond yields and equity markets, as foreign investors might reduce emerging market risk.

Why It Matters: BOJ's 30-year high rate hike signals a new global financial phase, impacting markets worldwide, including India.