Economy / Markets
BOJ lifts rate to 31-year high of 1.25% but split vote sends yen sliding to two-week low
The Bank of Japan raised its policy rate by 25 basis points to 1.25 percent on Friday in a 7-2 vote, the highest level since 1995, but the yen weakened as traders focused on dissenters Toichiro Asada and Ayano Sato who voted for a hold and a lack of hawkish forward guidance from Governor Kazuo Ueda. USD/JPY climbed into the 157.84-157.91 range for the dollar's largest single-day gain against the yen since December, and officials signalled readiness to intervene if moves become disorderly. Reuters polls expect a 1.5 percent rate by end-March 2027.