Bank of Japan set to raise policy rate to 1% – highest since 1995

Japan’s central bank is expected to increase its short‑term policy rate by 25 basis points to 1% at the June 15‑16 monetary‑policy meeting, the highest level since 1995. Governor Kazuo Ueda will be absent due to hospitalization, leaving Deputy Governor Shinichi Uchida to oversee the decision and post‑meeting communications.

The hike is aimed at curbing inflation and strengthening a weakening yen. Analysts warn that a higher rate will make the yen‑carry trade less attractive, potentially forcing investors to unwind leveraged positions in stocks, emerging‑market assets and cryptocurrencies. Past BOJ tightening triggered sharp sell‑offs in global risk assets, including a notable drop in Bitcoin. The move is therefore seen as a macro‑economic risk for digital‑asset markets and other high‑beta investments.