UPDATE: BOJ lifts rates to 1.25%, a 31-year high; softer hawkish tone weakens yen, boosts Japanese stocks

AI Market Summary
The BOJ's rate hike to 1.25% (a multi-decade high) is a major policy signal, but the less-hawkish guidance reduces expectations for an aggressive tightening path. That combination can weaken the yen despite higher rates, while supporting Japanese equities via easier forward financial conditions and improved risk sentiment. Near-term focus shifts to BOJ communication and positioning in JPY crosses and Japan-linked risk assets.
Impact level
● High
Affected assets
NCFXUSD2JPY/USDT+1.25%
AI Insight · NCFXUSD2JPY/USDTAI Insight
● Neutral
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UPDATE: The Bank of Japan raised its policy rate to 1.25%, the highest level in 31 years. A less hawkish signal in its guidance pressured the yen and supported Japanese equities.