BOJ leans to hike rates 25bp this month, keep flexibility

The shift in BOJ's stance signals a growing tolerance for policy tightening despite global uncertainty, which could ripple through carry trades and yen-denominated assets. The emphasis on flexibility suggests the hike is not a foregone conclusion, leaving room for data-dependent adjustments. For markets, the key is whether the BOJ frames this as a one-off move or the start of a sustained cycle—that framing will likely drive yen volatility and impact Japanese equities and bond yields more than the 25bp itself.