The Bank of Japan lifted the policy rate to 0.75%, the first print at this level since 1995, signaling a formal exit from three decades of ultra-low rates. Governor Haruhiko Kuroda framed the update as part of a mild but real recovery, with inflation and activity broadly aligned to the BoJ’s projections.

He cautioned that monetary policy pace will stay data-driven, depending on the economic and price outlook and financial conditions. With the neutral rate still distant, the BoJ did not commit to a definitive tightening path, vowing to assess the impact of the 0.75% move before any further adjustments.

Regarding wage-price dynamics, Kuroda indicated that persistent wage gains feeding into inflation could justify additional tightening. The BoJ will weigh the effects on activity and prices when determining the trajectory of future policy-rate moves.