BOJ Rate Hike Signals Policy Shift šÆšµ
The Bank of Japan has raised its short-term interest rate by 25 basis points, reaching 0.75%. This move marks a significant step away from its long-standing ultra-loose monetary policy.
Inflation remains a key driver, exceeding the 2% target. However, the BOJ indicated that real interest rates are still negative, suggesting continued accommodative financial conditions.
Yen Weakens, Bitcoin Strengthens š
Following the BOJ's announcement, the Japanese yen experienced a depreciation against the US dollar, trading at 156.03.
In contrast, Bitcoin saw an immediate upward movement, climbing from $86,000 to around $87,000.
Market Reaction Remains Muted āļø
The market's response was largely subdued, as the rate hike was widely anticipated and already factored into prices.
Concerns about a "carry trade" unwind were downplayed, given existing bullish sentiment for the yen and increasing bond yields. $BTC
