Yen Weakens Despite BOJ Hiking Rate to Highest Level Since 1995

The Bank of Japan raised its benchmark interest rate to the highest in 30 years and signaled more hikes are likely in the pipeline, yet the yen weakened from disappointment that the messaging from the central bank wasn’t stronger.

Governor Kazuo Ueda’s policy board increased the rate by a quarter percentage point to 0.75% in a unanimous decision, according to its statement Friday. The central bank cited the rising likelihood of its economic outlook being realized, and pointed to data showing solid wage growth momentum and receding risks from US tariffs. The rate change was expected by all 50 economists surveyed by Bloomberg.