Breaking: BOJ Hikes Interest Rates to 0.75%, the Highest in 30 Years
The post Breaking: BOJ Hikes Interest Rates to 0.75%, the Highest in 30 Years appeared first on Coinpedia Fintech News
The Bank of Japan raised interest rates by 0.25%, taking the benchmark rate to 0.75%, the highest in nearly 30 years. The central bank also signaled that more rate hikes could come in the future if the economy remains strong.
This tighter policy has raised concerns among macro analysts, who warn that Bitcoin could come under pressure and potentially fall below $63,000.
Bank of Japan Raises Rates to 0.75%On December 19, BOJ Governor Kazuo Ueda said the policy board unanimously raised interest rates by 0.25% to 0.75%, citing stronger confidence in Japan’s economic outlook.
For years, Japan’s very low rates supported the yen carry trade, where investors borrowed cheap yen to invest in higher-return assets. Higher rates weaken this strategy, reducing the flow of money into risk assets like stocks and cryptocurrencies.
