The Bank of Japan raised its policy rate to 1.25%, a level not seen in 31 years, prompting the yen to weaken and stocks to rise. The yen weakened by about ¥1 against the dollar after the announcement, while the Nikkei 225 recovered to ¥65,018 at the close, returning to the ¥65,000 range for the first time in 8 sessions.
At markets on the 18th, the Bank of Japan raised its policy rate to 1.25%. The yen weakened by about ¥1 against the dollar, moving to the ¥157 range.
Although there had been views that the market’s assumptions regarding BOJ rate hikes could be shaken, some said that the opposition of 2 members led to a retreat in expectations of an acceleration in future rate hikes.
The Nikkei 225 widened its gains in the afternoon, briefly rising by about ¥1,300. It closed at ¥65,018, returning to the ¥65,000 range for the first time in 8 sessions.