#bojraisesratesto31yearhigh BREAKING:
🇯🇵
Bank of Japan raises interest rates by 25 BPS to 1.25%, highest level in 31
years.
And this matters far beyond Japan.
Higher
rates not only make borrowing more expensive in Japan but also put pressure on the yen carry trade, where investors borrow cheap yen to
invest in higher-returning assets.
If investors are forced to unwind these positions, this could accelerate a global sell-off which would also hurt crypto.
Even worse: the BOJ is not ruling out back-to-back rate hikes or moves larger than 25 BPS.
Furthermore, this marks the first time since 2006 that the BOJ, Fed and ECB all raised rates during the same period.
Global liquidity is tightening.$FIL $XVG $DCR
🇯🇵
Bank of Japan raises interest rates by 25 BPS to 1.25%, highest level in 31
years.
And this matters far beyond Japan.
Higher
rates not only make borrowing more expensive in Japan but also put pressure on the yen carry trade, where investors borrow cheap yen to
invest in higher-returning assets.
If investors are forced to unwind these positions, this could accelerate a global sell-off which would also hurt crypto.
Even worse: the BOJ is not ruling out back-to-back rate hikes or moves larger than 25 BPS.
Furthermore, this marks the first time since 2006 that the BOJ, Fed and ECB all raised rates during the same period.
Global liquidity is tightening.$FIL $XVG $DCR
