The Yen Awakens: Bank of Japan Hikes Rates to 0.75% as Wage-Price Spiral Takes Hold

While most of the world’s central banks are racing to cut rates to support slowing economies, the Bank of Japan (BoJ) has officially taken a different path. On December 19, 2025, Governor Kazuo Ueda and the Policy Board voted unanimously to raise the uncollateralized overnight call rate to approximately 0.75 percent.