About the Federal Reserve's Rate Cuts and the Bank of Japan's Rate Hikes
Since 2024, the Federal Reserve has cut rates a total of 3 times, and the Bank of Japan has raised rates 3 times, with the timing nearly coinciding;
1: On September 18, 2024, the Federal Reserve cut rates by 50 basis points for the first time; on July 31, 2024, the Bank of Japan raised rates by 15 basis points;
2: On November 7, 2024, the Federal Reserve cut rates by 25 basis points, and again on December 18, it cut rates by another 25 basis points; the Bank of Japan raised rates by 25 basis points on January 24, 2025;
3: The Bank of Japan, on March 19, 2024, announced the exit from the negative interest rate policy implemented for 8 years, raising the policy interest rate from -0.1% to the range of 0—0.1%, while also canceling the Yield Curve Control (YCC) policy;
This rate hike is the first in Japan in 17 years since February 2007, marking the beginning of the normalization of monetary policy;
The Federal Reserve's rate cut in September is essentially a done deal; however, do not forget that on the other side, there are interest rate decisions in October and December, especially in October;
