Bank of Japan raises rates to highest level since 1995

The Bank of Japan has raised its policy rate to its highest level since 1995, extending the normalization of monetary policy after decades of exceptionally low borrowing costs.The move represents another step away from Japan&;s ultra-loose monetary regime and increases the cost of yen funding.Further tightening can support $JPY while increasing pressure on yen-funded carry trades, making the BOJ&;s guidance on subsequent rate moves particularly important for global risk assets.