#日本央行加息至31年高位 The Bank of Japan has just raised rates to 1.25%, the highest level in 31 years. The last time this rate was seen was around the bursting of the 1995 bubble.
Raising it from 1% by another 25 basis points, the decision passed 7–2, and it also hinted that further hikes may follow—so it’s basically in sync with the Federal Reserve. The era of a cheap yen and almost free borrowing may be coming to an end.
Why raise rates now? Inflation won’t stay down, wages are rising, and fighting in the Middle East is pushing up energy prices—Washington is also urging action. The yen has been so weak this year that authorities have spent nearly $100 billion to intervene, and the rate hike aims to pull the currency back—yet on the day of the announcement, the yen still fell.
The real bomb isn’t on the streets of Tokyo—it’s in the global carry trade: over the past few decades, the world borrowed near-zero-cost yen to speculate in U.S. stocks, Treasuries, and crypto. When Japan’s rates rise, there’s pressure for that money to flow back. Young people with mortgages feel the pain the most; meanwhile, older asset holders can still benefit from interest on their savings.
The first time in 31 years they put the knife to this level—if they add again next time, will global liquidity start to shake?
Still, compared with the 4% high interest rate that the U.S. Federal Reserve just raised to, this is relatively cheap money
$BTC $ETH
Raising it from 1% by another 25 basis points, the decision passed 7–2, and it also hinted that further hikes may follow—so it’s basically in sync with the Federal Reserve. The era of a cheap yen and almost free borrowing may be coming to an end.
Why raise rates now? Inflation won’t stay down, wages are rising, and fighting in the Middle East is pushing up energy prices—Washington is also urging action. The yen has been so weak this year that authorities have spent nearly $100 billion to intervene, and the rate hike aims to pull the currency back—yet on the day of the announcement, the yen still fell.
The real bomb isn’t on the streets of Tokyo—it’s in the global carry trade: over the past few decades, the world borrowed near-zero-cost yen to speculate in U.S. stocks, Treasuries, and crypto. When Japan’s rates rise, there’s pressure for that money to flow back. Young people with mortgages feel the pain the most; meanwhile, older asset holders can still benefit from interest on their savings.
The first time in 31 years they put the knife to this level—if they add again next time, will global liquidity start to shake?
Still, compared with the 4% high interest rate that the U.S. Federal Reserve just raised to, this is relatively cheap money
$BTC $ETH