Bank of Japan raises rates to 31-year high, yen tumbles on market disappointment

The Bank of Japan $BOJ lifted its policy rate by 25 basis points to the highest level since 1995, signaling a pivot toward preemptive inflation-fighting measures. The surprise rate hike was intended to support currency stability, yet the yen $JPY sank to two-week lows as markets digested the move.

Bitcoin $BTC surged past $77,000 following the BOJ announcement, while analysts noted the yen's weakness despite tightening—a divergence from traditional rate-hike dynamics. The central bank's hawkish stance on inflation contrasts with concerns about its impact on growth in Asia's largest economy. #central_banks #japan #forex