The Bank of Japan (BOJ, Japan's central bank) is raising interest rates as Japan's economy recovers and policymakers contend with inflation and a weak yen. The move marks a break from decades of ultra-low rates that helped drive the yen carry trade, a strategy in which investors borrow low-cost yen and deploy the funds into higher-yielding assets elsewhere. That change matters beyond Japan because the carry trade has long linked BOJ policy to global liquidity and risk-taking across markets.