Bank of Japan Expected to Deliver Biggest Rate Hike in 30 Years — Markets Signal a Decisive Shift
Multiple market sources are now circulating strong rumours that the Bank of Japan (BOJ) is preparing to raise interest rates in December — a move that would mark the country’s highest interest-rate level in nearly three decades.
According to these reports, the $BOJ is expected to increase rates by 25 basis points, bringing the benchmark rate to 0.75% at its 19 December meeting. If confirmed, this would be the highest level since 1995, further signalling Japan’s gradual exit from its long-standing era of ultra-loose monetary policy.
Recent remarks from $BOJ Governor Kazuo Ueda have only strengthened market confidence, with traders now pricing in roughly a 90% probability of the December hike. Ueda emphasized that the improving economic outlook — supported by strong corporate earnings, rising investment, and expectations of healthy wage growth — provides sufficient ground for the BOJ to move forward.
While the central bank describes this step as a transition away from ultra-easy policy rather than aggressive tightening, officials continue to hint that further rate hikes remain possible if upcoming data confirms sustained inflation and wage momentum.
This evolving scenario is already placing upward pressure on the Japanese yen, as many analysts believe markets have yet to fully price in the next phase of the $BOJ’s policy cycle. If the BOJ follows through, December could mark a historic turning point for Japan’s monetary stance — and potentially set a new direction for global currency and equity flows as we head into 2025. #BTCVSGOLD