The Bank of Japan raised its policy rate to 1.25% in a 7-2 vote on September 18, the highest Japanese policy rate since 1995 and the sixth increase in its current tightening cycle. The decision came as Japan’s 10-year government bond yield reached its highest level since August 1996, with separate reports placing it at 3.058% and 3.075%. BOJ Governor Kazuo Ueda said further increases, including 50-basis-point moves if conditions warrant, remained possible. Higher Japanese and U.S. borrowing costs, resilient business activity, elevated energy prices and geopolitical instability reinforced global monetary-tightening concerns, while potentially reducing the appeal of yen-funded carry trades and increasing sensitivity across Bitcoin and other risk assets.