🚨 Bank of Japan Delivers Historic Rate Hike
The Bank of Japan raised its benchmark interest rate to 0.75%, the highest level in 30 years, after a unanimous decision by the policy board. Governor Kazuo Ueda cited growing confidence in Japan’s economic outlook as the key reason behind the 0.25% hike.
📉 Market reaction tells the real story:
Despite the hike, the yen weakened to ~156 per dollar, signaling that markets had fully priced in the move well in advance.
What this means:
The surprise factor is gone
Liquidity expectations remain intact
Risk assets avoided a shock reaction
This was a hawkish move in headline, but neutral in impact. When a rate hike fails to strengthen the currency, it usually means markets are already looking ahead. For global risk assets, including crypto, this reduces uncertainty rather than increasing it. The real trigger will now come from future guidance, not today’s hike.