#BOJRaisesRatesTo31YearHigh
đšđŻđ” BOJ RAISES RATES TO A 31-YEAR HIGH!
The Bank of Japan has raised its policy rate from 1.00% â 1.25%, marking Japanâs highest rate in roughly three decades. đ
đș Rate hike: +25 bps
đŠ New BOJ rate: 1.25%
đ Highest since: 1995
đłïž Vote: 7â2
đŻđ” Governor: Kazuo Ueda
đ„ WHY IT MATTERS FOR GLOBAL MARKETS
Japan has historically been an important source of low-cost yen funding.
Higher Japanese rates can affect:
âĄïž Yen-funded trades
âĄïž Global bond yields
âĄïž Cross-border capital flows
âĄïž Market liquidity
âĄïž Risk assets, including crypto
Interestingly, the yen weakened after the decision, as investors focused on the two dissenting votes and uncertainty over the pace of future hikes.
â ïž IMPORTANT: A BOJ hike does not automatically mean Bitcoin or stocks must fall. The market reaction will depend on future BOJ guidance, inflation, the yen and global liquidity conditions.
đ Japanâs shift away from ultra-low rates is becoming an increasingly important macro story for crypto.
$CELR $ONE $C
đšđŻđ” BOJ RAISES RATES TO A 31-YEAR HIGH!
The Bank of Japan has raised its policy rate from 1.00% â 1.25%, marking Japanâs highest rate in roughly three decades. đ
đș Rate hike: +25 bps
đŠ New BOJ rate: 1.25%
đ Highest since: 1995
đłïž Vote: 7â2
đŻđ” Governor: Kazuo Ueda
đ„ WHY IT MATTERS FOR GLOBAL MARKETS
Japan has historically been an important source of low-cost yen funding.
Higher Japanese rates can affect:
âĄïž Yen-funded trades
âĄïž Global bond yields
âĄïž Cross-border capital flows
âĄïž Market liquidity
âĄïž Risk assets, including crypto
Interestingly, the yen weakened after the decision, as investors focused on the two dissenting votes and uncertainty over the pace of future hikes.
â ïž IMPORTANT: A BOJ hike does not automatically mean Bitcoin or stocks must fall. The market reaction will depend on future BOJ guidance, inflation, the yen and global liquidity conditions.
đ Japanâs shift away from ultra-low rates is becoming an increasingly important macro story for crypto.
$CELR $ONE $C