BOJ Raises Rates For First Time in 17 Years, But Impact Seen As Limited
- BOJ raised rates for the first time in 17 years, but it was seen as a small step
- Japan's bond yields remain far lower than other advanced economies
- Low yields fail to temper carry trades that weaken the yen
- Carry trades involve borrowing cheap yen to invest in higher yielding assets
- Even after hike, yield gap remains wide with U.S., Europe, causing yen to slide
