Bank of Japan decided to raise its policy interest rate from 0.5% to 0.75%, the highest level in 30years since 1995.

One factor behind this is the weak yen and rising prices. However, as the market had already priced in an interest rate hike, the yen remains weak at around 156yen to the dollar.

Meanwhile, long-term interest rates, which serve as the benchmark for fixed mortgage rates, briefly exceeded 2%, reaching the highest level in approximately 26years.

-Bank of Japan Governor Kazuo Ueda,
"Regarding future monetary policy, given that real interest rates are currently at extremely low levels, we will continue to raise the policy interest rate and adjust the level of monetary easing in accordance with improvements in economic and price conditions."

-Shinsuke Tsutsumi, former editor-in-chief of the international information magazine "Foresight",
"This rate hike was as expected, and I don't think it will cause a market uproar.
In terms of something closer to us, since short-term interest rates have been raised, I expect "floating-rate" mortgages will likely rise in the near future.
Meanwhile, long-term interest rates also briefly exceeded 2%, reaching their highest level in 26 years and 4 months. This will be reflected more in "fixed-rate" mortgages.
The interest rate hike was as predicted, so the yen remains weak, but if interest rates had not been raised this time, the yen would have continued to weaken, which would have resulted in continued rising prices, so the interest rate hike has helped to contain this somewhat.
Of course, this is unlikely to cause the yen to weaken in the opposite direction or to halt price increases all at once, but I think it's better to interpret it as meaning that if we hadn't raised interest rates, the brakes wouldn't have been put on.
I think it was necessary in the long term."