🇯🇵 BOJ JUST PUSHED RATES TO A 31-YEAR HIGH
$ONE
The Bank of Japan raised its benchmark rate from 1.00% to 1.25%, the highest level since 1995.
The bigger story isn't simply the hike.
Japan is moving further away from the ultra-low-rate regime that supported global carry trades for years. That matters because changes in Japanese funding conditions can spill into global FX, bonds and risk assets.
$CTSI
Two board members opposed the move, while inflation remains close to the BOJ's 2% target.
For crypto, the key variables to watch are:
• JPY funding conditions
• USD/JPY reaction
• Global liquidity
• Treasury yields
• BTC's response to tighter financial conditions
A rate hike is one data point.
The liquidity reaction is the signal.
$BTC
#bojraisesratesto31yearhigh
$ONE
The Bank of Japan raised its benchmark rate from 1.00% to 1.25%, the highest level since 1995.
The bigger story isn't simply the hike.
Japan is moving further away from the ultra-low-rate regime that supported global carry trades for years. That matters because changes in Japanese funding conditions can spill into global FX, bonds and risk assets.
$CTSI
Two board members opposed the move, while inflation remains close to the BOJ's 2% target.
For crypto, the key variables to watch are:
• JPY funding conditions
• USD/JPY reaction
• Global liquidity
• Treasury yields
• BTC's response to tighter financial conditions
A rate hike is one data point.
The liquidity reaction is the signal.
$BTC
#bojraisesratesto31yearhigh