The Bank of Japan may really be about to act this time! A market survey shows that expectations for a rate hike in September are already near fully priced in, and before January next year, there is a high likelihood of yet another increase.
What’s even more noteworthy is how fast market expectations are changing. A few months ago, everyone thought a rate hike every six months from the Bank of Japan would be just fine. Now, people are already betting on hikes once every quarter. In other words, Japan’s monetary policy is shifting from “moving slowly” to “picking up the pace.”
**Global liquidity is starting to see new variables.** If Japan keeps hiking rates, carry-trade funds in yen, global equity markets, and even the crypto market could all be affected. Going forward, besides watching for the U.S. to cut rates, the Bank of Japan’s moves can no longer be ignored. Follow me and keep using plain language to understand global markets!$RVN $IOST $VTHO
What’s even more noteworthy is how fast market expectations are changing. A few months ago, everyone thought a rate hike every six months from the Bank of Japan would be just fine. Now, people are already betting on hikes once every quarter. In other words, Japan’s monetary policy is shifting from “moving slowly” to “picking up the pace.”
**Global liquidity is starting to see new variables.** If Japan keeps hiking rates, carry-trade funds in yen, global equity markets, and even the crypto market could all be affected. Going forward, besides watching for the U.S. to cut rates, the Bank of Japan’s moves can no longer be ignored. Follow me and keep using plain language to understand global markets!$RVN $IOST $VTHO
