Speculation Mounts on BOJ Rate Hike Amid Yen Weakness
Markets are speculating that the Bank of Japan may raise interest rates soon, following signals from policymakers after years of ultra‑easy monetary policy. The yen’s sustained weakness has raised import costs and inflation concerns, putting pressure on the BOJ to act.
A potential rate hike could strengthen the yen, impact Japanese government bond yields, and influence global capital flows, creating ripple effects across currencies, equities, and even crypto markets. Traders are closely monitoring the BOJ’s next move as its decision could drive significant market volatility.