💥Bank of Japan's December Rate Hike Follow-up: Today (December 22, 2025) Latest Market and Economic Analysis
❗️❗️❗️The Bank of Japan announced a 25 basis point rate hike on December 19, raising the policy interest rate to 0.75%, the highest level in 30 years since 1995. This decision met market expectations, passed unanimously, marking another key step in the normalization of Japan's monetary policy. Currently (December 22), the effects of the rate hike have begun to show, with signs of moderate recovery in the Japanese economy, but it also faces uncertainties. $BTC
Background and Review of Kazuo Ueda's Statements on Rate Hike
Governor Kazuo Ueda emphasized at the press conference on the 19th that the rate hike was based on the strengthening of the wage-price virtuous cycle mechanism and increased confidence in economic recovery. He stated, "If the economic and price outlook is realized, we will continue to adjust the degree of monetary easing." Ueda warned that delaying rate hikes could lead to a forced significant adjustment in the future, causing market turmoil. At the same time, he noted that even after the rate hike, real interest rates remain extremely low, and the overall financial environment remains accommodative, supporting economic growth. Ueda is optimistic about the momentum for wage increases in the spring of 2026, believing that the upward momentum of corporate wages is sustainable, providing a foundation for further normalization. $ETH
Today's Market Reaction and Latest Developments
• Yen Exchange Rate: After the rate hike, the yen initially strengthened, but due to Ueda not giving a clear signal for the next rate hike, disappointment in the market led to a retreat of the yen. Today's USD/JPY exchange rate fluctuates between 156-157, under short-term pressure but not experiencing significant depreciation.
• Bond Market: The yield on 10-year Japanese government bonds briefly broke 2%, reaching a multi-year high, reflecting market concerns over fiscal pressure and rising long-term interest rates. However, the central bank stated it will closely monitor and intervene if necessary.
• Stock Market: The Nikkei 225 index rose slightly on the day of the rate hike and continued to rebound moderately today, indicating the market has digested expectations. The Japanese stock market benefits from improved corporate profits and enhanced export competitiveness. $DOGE 🐶p u p p i e s
