Japan officially bids farewell to the 'zero interest rate era' 🔥🔥🔥
Just now, the Bank of Japan announced an interest rate hike, raising the rate to 0%-0.1%, the first increase in 17 years.
This is not an ordinary operation, but a signal:
The last major economy with long-term negative interest rates has shifted, and the ultra-loose era that has lasted for many years is coming to an end.
For Japan, this is a sign of loosening deflation.
Wages are experiencing the strongest growth in decades, and the 'lost thirty years' may truly be coming to an end.
Why isn't the market panicking instead?
Because this interest rate hike is very restrained. The Bank of Japan has clearly stated that it will not raise rates continuously in the short term, and the overall environment remains relatively loose; the shoe has dropped, releasing uncertainty instead.
But the impact will not end so simply.
The yen has long served as global 'cheap funds,' widely used for arbitrage trading. Once the path to interest rate hikes opens, this method will gradually become ineffective, and global capital may be reshuffled.
At the same time, Japanese capital is an important buyer in the global bond market, and marginal changes will continue to affect markets such as U.S. Treasuries and European bonds.
This is not just a matter for Japan.
When the last zero interest rate country shifts, global assets will need to be re-priced—
U.S. stocks, gold, foreign exchange, and even the cryptocurrency market cannot avoid this change.
An era has ended, and a new cycle is quietly unfolding
