The Bank of Japan has raised its benchmark interest rate to 0.75%, the highest level in over 30 years, catching markets by surprise.
Higher interest rates mean tighter liquidity, which usually puts pressure on risk assets like stocks and cryptocurrencies. With borrowing costs rising, investors tend to reduce exposure to high-risk markets, increasing volatility.
This move is widely seen as bearish for global risk sentiment, and its impact may extend beyond Japan through FX markets, carry trade unwinding, and global capital flows.
Traders should stay cautious as short-term volatility and downside risk could increase across global markets. ⚠️📉
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hasi Shaikh
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Bullish
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