〈Yen weakens despite rate hike〉BOJ faces internal and external pressures, with no end in sight to its currency defense campaign as financial markets urge it on, saying the rate hike is “too little, too late”

At its latest Monetary Policy Meeting, the BOJ raised interest rates to 1.25%. This marks a rate hike to the highest level in roughly 3 decades.

Reports say dissenting votes mounted within the policy meeting, pointing to internal divisions. The decision also exposed discord within the market.

Market participants had expected a rate hike to curb the yen’s weakness to serve as a “trump card,” but views are emerging that it has yet to produce a sufficient effect.

Why has the effect been limited? The future conduct of policy and any additional exit strategy are expected to be the focus, with further developments awaited.