Japan's new 1.25% rate has two dates worth keeping separate.
The Bank of Japan decided today, September 18, to lift its overnight call-rate target from around 1.0% to around 1.25%. The vote was 7-2. That's a 25-basis-point increase.
The detail I'm putting on my calendar: the new guideline takes effect on September 24. The decision date and the implementation date are six days apart.
That gap isn't a six-day countdown before markets can react. Investors can reassess an announced policy change before it becomes operational. I wouldn't treat September 24 as a guaranteed second shock for BTC.
I'm also keeping two parts of the BOJ's message together. It says further rate increases will respond to economic, price and financial developments, while expecting financial conditions to remain accommodative after this change. Today's hike doesn't give us a fixed timetable for the next one.
For my crypto watchlist, this is a confirmed policy update, not proof that yen-funded positions are being unwound. That stronger claim needs separate evidence of positioning and market flows.
Which would change your reading of this decision more: the implementation date or clearer guidance on the next increase, and why?
#BankOfJapan #Macro
The Bank of Japan decided today, September 18, to lift its overnight call-rate target from around 1.0% to around 1.25%. The vote was 7-2. That's a 25-basis-point increase.
The detail I'm putting on my calendar: the new guideline takes effect on September 24. The decision date and the implementation date are six days apart.
That gap isn't a six-day countdown before markets can react. Investors can reassess an announced policy change before it becomes operational. I wouldn't treat September 24 as a guaranteed second shock for BTC.
I'm also keeping two parts of the BOJ's message together. It says further rate increases will respond to economic, price and financial developments, while expecting financial conditions to remain accommodative after this change. Today's hike doesn't give us a fixed timetable for the next one.
For my crypto watchlist, this is a confirmed policy update, not proof that yen-funded positions are being unwound. That stronger claim needs separate evidence of positioning and market flows.
Which would change your reading of this decision more: the implementation date or clearer guidance on the next increase, and why?
#BankOfJapan #Macro
