BOJ Hikes to 1.00% — Highest Rate Since 1995 — as Warsh's First FOMC Opens

The Bank of Japan raised its overnight call rate 25bp to 1.00%, the highest level since 1995, in a 7-1 vote (board member Asada dissenting). The BOJ cited Iran-war-driven energy-cost pass-through risk to inflation as justification. The decision landed the same day Kevin Warsh's first FOMC meeting as Fed Chair opened (June 16-17), the exact overlap flagged for weeks as carrying August-2024-style yen-carry-unwind risk. Market reaction on the day was orderly: Nikkei rose 0.46% and the yen traded around 160.22/USD — a much calmer reaction than the feared 'Black Monday II' replay, though yen weakness would resume later in the month.