Japan has confirmed an interest rate increase to 150 basis points, marking the highest rate level seen in approximately 46 years.
Historically, periods of rate hikes in Japan have coincided with large-scale adjustments across financial markets, including significant reallocations in bonds and exchange-traded funds. Higher interest rates often influence liquidity conditions, borrowing costs, and investor risk preferences, which can lead to increased volatility across asset classes.
Market participants are now closely monitoring how this policy shift may impact global bond markets, equity flows, and broader risk sentiment in the coming period.
