The Bank of Japan raised its target for the uncollateralized overnight call rate by 25 basis points to about 1.25%, the highest level since 1995, after a three-month interval between increases. Governor Kazuo Ueda reaffirmed plans for further hikes while leaving open the possibility of a 50-basis-point increase, although he signaled that abrupt tightening could heighten market volatility. The yen nevertheless weakened to the 157-per-dollar range, suggesting investors did not view the decision as sufficiently hawkish. The move marked the first month in which Japan, the U.S. Federal Reserve and the European Central Bank all raised rates. The decision came as global investors also reassessed further ECB tightening, with the euro trading below $1.15 and euro zone bond yields stabilizing after a sharp selloff.