JGBs steady, Nikkei eases from record high as BOJ rate decision looms

Bank of Japan 25bp rate hike to 1%, as widely expected

Bank of Japan today - preview - set to lift rates to 31-year high as Iran deal clouds path

BOJ set to hit 1% but vote split, bond taper pause and July signals are the real story

Bank of Japan raises rates to 1%, and will end tapering next year

The Bank of Japan's recent decision to raise its benchmark rate by 25 basis points to 1%, while committing to halt tapering by April 2027, underscores a significant shift in its monetary policy amidst rising inflation concerns. Per the full note from ING, the 7-1 vote reflects a consensus within the central bank about inflationary pressures, despite dissent regarding downside risks to the economy. The immediate market reaction was mild, but a sustained hawkish tone from Deputy Governor Uchida indicates further tightening could be anticipated, contingent on global geopolitical developments, particularly regarding the Middle East.