Japan Nears First Three Rate Hikes in a Year Since 1989, Putting Bitcoin and Stocks at Risk
Japan’s inflation surprise is adding pressure on the Bank of Japan to raise interest rates at its December 17–18 meeting. Producer prices rose 7.1% in October, above economists’ 6.5% forecast, while import prices climbed 24.8% in yen terms, according to BeInCrypto. Japan has raised its policy rate twice this year, in June and September, bringing it to 1.25%; another increase would mark three hikes in a calendar year for the first time since 1989. In an October Reuters poll, 54 of 78 economists forecast a hike, though BOJ officials remain divided as consumer spending stays weak. The BOJ previously raised its old official discount rate three times in 1989, later kept borrowing costs near zero and adopted negative rates before ending them in March 2024.$NVDAB $NOM
Japan’s inflation surprise is adding pressure on the Bank of Japan to raise interest rates at its December 17–18 meeting. Producer prices rose 7.1% in October, above economists’ 6.5% forecast, while import prices climbed 24.8% in yen terms, according to BeInCrypto. Japan has raised its policy rate twice this year, in June and September, bringing it to 1.25%; another increase would mark three hikes in a calendar year for the first time since 1989. In an October Reuters poll, 54 of 78 economists forecast a hike, though BOJ officials remain divided as consumer spending stays weak. The BOJ previously raised its old official discount rate three times in 1989, later kept borrowing costs near zero and adopted negative rates before ending them in March 2024.$NVDAB $NOM
