Japan’s Central Bank Raises Rates 25bp as Yen Slides Past 157

The BOJ's fastest tightening since 1990 landing alongside a yen through 157 and softer-than-expected inflation suggests the rate move is doing little to arrest currency weakness — a divergence that matters for carry trades funded in yen and for regional FX. The simultaneous offshore yuan strength and an eight-session fixing run point to a widening policy split between Tokyo and Beijing, which is the more consequential signal for cross-border flows. Whether the yen's slide persists despite tighter policy, and how long the fixing streak extends, are the open questions.