0412 GMT - The Bank of Japan is likely to tread carefully after raising its policy rate to 1.25%, State Street Investment Management says. Although every meeting remains "live," Gov. Kazuo Ueda may avoid committing to a path for further increases given softer household consumption and relatively well-behaved inflation, economist Krishna Bhimavarapu says. Strategist Masahiko Loo expects Gov. Ueda to strike a neutral-to-slightly hawkish tone, noting that resilient growth, persistent inflation risks and an accommodative real policy rate support further normalization. The debate is shifting from whether the BOJ will hike again to how high rates will ultimately go.