BOJ Raises Rates as Yen Falls Amid Market Expectations
AI Summary1 min read
TL;DR
The Bank of Japan raised its policy rate to 0.75%, a move widely anticipated by markets, leading to a slight yen decline. Investors are now focused on future rate hike signals from the central bank, while other currencies like the euro and sterling gained against the yen.
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Bank of Japanyeninterest ratescurrency marketsinflation
The yen fell slightly after the Bank of Japan raised its policy rate to 0.75% from 0.5% in a widely expected move. Investors await further details from the central bank's governor to see if it can continue hiking rates next year. The euro extended gains to 182.92 yen, while sterling rose 0.3% to 208.71 yen. The dollar briefly weakened after a sharp fall in US inflation, but the move soon retraced.
