{video} The Bank of Japan delivered its first rate hike of 2026 at its June meeting, raising the policy rate by 25bps to 1.0%, its highest level since 1995. This marks a further step in the cautious “adjustment of the degree of monetary accommodation”, as framed by the BoJ. The process began in 2024, as persistent deflation faded and the decade-long reliance on unconventional tools no longer seemed warranted. Monetary normalisation is founded on two pillars: raising the policy rate and reducing the pace of Japanese Government Bonds (JGB) purchases. In practice, this presents a challenging balancing act. The BoJ must ... (full story)