Bank of Japan increased its policy rate from 1.00% to 1.25% on Friday, marking its first hike in three months.
The decision passed 7–2, with two board members voting against the increase.
The move was widely expected, so the bigger market story is what comes next. The BOJ says underlying inflation is approaching its 2% target, while higher energy costs and a weaker yen are adding pressure.
Interestingly, the yen weakened after the decision, showing that markets were already pricing in the hike and are now watching Governor Ueda for clues on future moves.
For global markets, BOJ tightening matters because Japan has been a major source of low cost funding for years.
Now the focus shifts to the next move.
$BTC
$ETH
$BNB
#BoJ #Japan
#BOJHikesRatesTo31YearHigh
The decision passed 7–2, with two board members voting against the increase.
The move was widely expected, so the bigger market story is what comes next. The BOJ says underlying inflation is approaching its 2% target, while higher energy costs and a weaker yen are adding pressure.
Interestingly, the yen weakened after the decision, showing that markets were already pricing in the hike and are now watching Governor Ueda for clues on future moves.
For global markets, BOJ tightening matters because Japan has been a major source of low cost funding for years.
Now the focus shifts to the next move.
$BTC
$ETH
$BNB
#BoJ #Japan
#BOJHikesRatesTo31YearHigh
