The BoJ hiked rates to a 30-year high of 1.0% to counter yen weakness, but the currency remains near 160.00 against the dollar.
The Bank of Japan increased interest rates to 1.0%, the highest level since the 1990s, in a bid to stabilize the yen. The move follows persistent weakness in the currency, which has traded below 160.00 against the dollar despite the hike.
Prior to the decision, the BoJ had maintained rates near zero for years, with the last hike occurring in 2007. Analysts had anticipated a modest increase, but the yen’s muted reaction suggests markets remain unconvinced of its impact.
The yen showed little immediate response, hovering near 160.00 as traders weighed the BoJ’s commitment to further tightening amid global economic uncertainties.