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BOJ Lifts Rate to 0.75% as Yen Slips and Global Stocks Climb

Markets recalibrate rate expectations following a noisy U.S. CPI print.

Overview

  • The Bank of Japan raised its benchmark by 25 basis points to 0.75%, the highest in roughly three decades, and signaled scope for further tightening.
  • Japan’s 10‑year government bond yield approached 2.0%, touching multi‑decade highs, as the Nikkei gained about 1%.
  • The yen weakened to roughly ¥155–157 per U.S. dollar after the decision, reflecting persistent rate differentials.
  • U.S. November CPI slowed to about 2.7% year over year, a reading widely flagged as distorted by the shutdown, with markets assigning roughly 20–27% odds to a January Fed cut.
  • Micron’s blowout earnings lifted tech shares and helped extend equity gains across Asia, Europe and U.S. markets.