$BTC $🇯🇵 Bank of Japan raises rates to 1.25% — highest in 31 years
The Bank of Japan has raised its policy rate by 25 basis points to 1.25%, marking another step away from decades of ultra-loose monetary policy. The decision was approved 7–2 and came amid concerns that inflation could exceed the BOJ’s 2% target.
The key question now is: Will this remain a gradual normalisation, or could a weak yen and persistent inflation push the BOJ toward faster tightening?
📌 Why it matters: Higher Japanese rates can affect the yen, Japanese bond yields, global markets and the carry-trade environment.
Markets will be watching the BOJ’s next moves closely. 📊
BOJ Statement on Monetary Policy BOJ board members Asada, Sato opposed rate decision. BOJ's Asada said: recent CPI rise below 2% means economic conditions aren't necessarily robust. BOJ's Sato: current economic and price trends have not significantly accelerated, so raising rates is not suitable. BOJ: Economy, prices tracking baseline projection in outlook report. Note on Market Impact: Following these cautious and dovish statements from the Bank of Japan, Bitcoin (BTC) instantly experienced a strong bullish pump, driving the price upward to sweep overhead short liquidity.$BTC