Bank of Japan raised its policy rate 25 bps to 1.25% on Friday, matching all economists surveyed. The move was the fastest pace of tightening in 36 years, and the gap since June’s hike was the shortest since 1990. Governor Ueda will explain the decision and the near-term rate path at a scheduled press conference. FX markets have shifted focus from whether to hike to how many hikes will follow; several institutions warn the yen could weaken after the decision unless the BOJ signals stronger tight

Bank of Japan raised its policy rate 25 bps to 1.25% on Friday, matching all economists surveyed. The move was the fastest pace of tightening in 36 years, and the gap since June’s hike was the shortest since 1990. Governor Ueda will explain the decision and the near-term rate path at a scheduled press conference. FX markets have shifted focus from whether to hike to how many hikes will follow; several institutions warn the yen could weaken after the decision unless the BOJ signals stronger tightening. A Reuters survey shows markets broadly expect rates to rise to 1.5% by end‑March 2027 and to 1.75% in Q2 2027.