Japan's Central Bank Exits Three Decades of Rock-Bottom Rates

The Bank of Japan raised its benchmark rate to 1.0% on June 16, hitting a 15-year peak and ending its ultra-loose monetary era. Governor Kazuo Ueda signaled further hikes toward 1.25% by year-end, calibrating moves to economic data. The shift reshapes global capital flows and strains Japanese institutions holding foreign-denominated bonds.