BoJ raises rates and plans to continue hiking since real interest rates remain at "significantly low levels"
Key points
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BoJ decided today to raise policy rate from 0.50% to 0.75%, its highest level since September 1995
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Bank concluded that uncertainty stemming from US tariffs had faded and that "risk of firms' active wage-setting behavior being interrupted is expected to be low"
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BoJ made no changes to its plans to continue raising rates, and we expect next hike to come in July 2026, with terminal rate of 1.25%