โ ๏ธ Important Market Update | Macro Analysis
๐ฏ๐ต Japan is considering an interest rate hike โ a decision that is not just domestic and can have global effects.
๐ But why is Japan thinking about raising interest rates?
1๏ธโฃ Rising Inflation
Japan has experienced low or near-zero inflation for decades, but recently:
Prices of goods and services have increased
Inflation has exceeded the central bankโs target
โก๏ธ Raising interest rates is one of the main tools to control inflation.
2๏ธโฃ Weak Japanese Yen
A weaker yen has caused:
More expensive imports (energy, food)
Greater pressure on consumers
๐ Higher interest rates can strengthen the yen and help prevent capital outflow.
3๏ธโฃ Liquidity and Financial Risk Control
Years of ultra-low interest rates:
Injected large liquidity into global markets
Increased risk in volatile assets
โก๏ธ Now Japan is trying to manage some of these risks.
๐ Higher interest rates usually mean tighter liquidity
๐ Risk assets like crypto and Bitcoin may face pressure.
This post is for market awareness and macro analysis only.
โ๏ธThis is not financial advice.
