【Bank of Japan rate hike to 1.25%, with rates hitting a 31-year high📈】
Group chat: 📲 加入X先生的粉丝群聊
On Friday, the Bank of Japan raised rates by 25 basis points to 1.25%. This is the highest level since 1995 and a new high in 31 years. The vote result was 7 to 2, but after the hike the yen actually fell to 156.64.
First, let’s clarify the basis for this rate hike—we need to look at those two inflation figures. In August, CPI was 1.9%, but core CPI was only 1.7%. Two members voted against it on the spot, saying the Japanese economy isn’t strong enough yet.
What’s really worth watching is the immediate reaction from the bond market that day. The yield on 10-year Japanese government bonds didn’t rise—it fell, dropping to 2.947%. After the decision was released, the market didn’t treat it as a hawkish signal.
For crypto, the yen is the main faucet of the world’s carry trade. Once it tightens, the funds borrowed in yen to buy U.S. stocks and crypto have to be unwound. BTC is currently at $77,315, still up 1.28% over the day.
Do you think this yen rate hike is the last straw—or just a false alarm? Let’s talk in the comments.
#日本央行加息 #日本加息
Group chat: 📲 加入X先生的粉丝群聊
On Friday, the Bank of Japan raised rates by 25 basis points to 1.25%. This is the highest level since 1995 and a new high in 31 years. The vote result was 7 to 2, but after the hike the yen actually fell to 156.64.
First, let’s clarify the basis for this rate hike—we need to look at those two inflation figures. In August, CPI was 1.9%, but core CPI was only 1.7%. Two members voted against it on the spot, saying the Japanese economy isn’t strong enough yet.
What’s really worth watching is the immediate reaction from the bond market that day. The yield on 10-year Japanese government bonds didn’t rise—it fell, dropping to 2.947%. After the decision was released, the market didn’t treat it as a hawkish signal.
For crypto, the yen is the main faucet of the world’s carry trade. Once it tightens, the funds borrowed in yen to buy U.S. stocks and crypto have to be unwound. BTC is currently at $77,315, still up 1.28% over the day.
Do you think this yen rate hike is the last straw—or just a false alarm? Let’s talk in the comments.
#日本央行加息 #日本加息
