Big news! The Bank of Japan suddenly “pulls out a big move”!
The BoJ will directly raise its policy interest rate to 1.25%, the highest level in 31 years! Japan’s years-long era of ultra-loose monetary policy is accelerating its shift.
Don’t underestimate the change of just 0.25%—what’s really worth paying attention to is the “liquidity logic” behind it 👇
In the past, global markets enjoyed low interest rates and low-cost funding in yen for a long time. Now Japan is starting to tighten, which could mean the global funding environment may change further.
More importantly: after the BoJ’s rate hike, the yen did not strengthen immediately—on the contrary, it weakened for a time. The market has begun to reassess the room for further rate hikes.
#日本央行加息至31年高位
The BoJ will directly raise its policy interest rate to 1.25%, the highest level in 31 years! Japan’s years-long era of ultra-loose monetary policy is accelerating its shift.
Don’t underestimate the change of just 0.25%—what’s really worth paying attention to is the “liquidity logic” behind it 👇
In the past, global markets enjoyed low interest rates and low-cost funding in yen for a long time. Now Japan is starting to tighten, which could mean the global funding environment may change further.
More importantly: after the BoJ’s rate hike, the yen did not strengthen immediately—on the contrary, it weakened for a time. The market has begun to reassess the room for further rate hikes.
#日本央行加息至31年高位