The Bank of Japan (BoJ) is on track to raise interest rates for the first time in 11 months, a decision that could indirectly impact Bitcoin (BTC) and global markets.
According to reports in the Asian press, monetary authorities are considering raising the benchmark interest rate by 25 basis points from 0.5% to 0.75% at the monetary policy meeting. It is scheduled for December 18th and 19th.
If it comes true, This adjustment would push Japan’s official interest rate to its highest level since 1995.. Central bank officials believe this rate hike is likely, but the market will be watching closely to see how aggressive the Bank of Japan will be regarding the possibility of further rate hikes.
The bank has kept interest rates unchanged since January. This is in a context characterized by underlying inflation trends and uncertainty regarding the impact of US tariffs on the Japanese economy.
During the summer, Japan recorded an economic contraction; Growth expected to resume this quarter. It is also backed by extensive government fiscal stimulus.
According to a previous analysis cited by CriptoNoticias, changes in Japan’s monetary policy could have an “unexpected” impact on Bitcoin. Especially forex market and traditional«Carry Trade» Along with the yen. The rising interest rate environment in Japan could reduce liquidity globally and put downward pressure on assets considered to be riskier.
In January, Japan was already warned of the possibility of a rate hike, the highest in 17 years. May upset the balance of financial markets. Now, as a decision approaches, investors are watching closely to see whether these financial winds from Asia will ultimately impact the market’s leading digital assets.
(Tag translation) Bitcoin (BTC)
