Bank of Japan Signals Continued Rate Hikes as Bond Yields Surge
The Bank of Japan (BOJ) has raised interest rates to 0.75%, marking the highest level in three decades. Governor Kazuo Ueda confirmed further policy normalization is imminent, with 10-year government bond yields climbing to 2.075% – a level last seen in 1999. This tightening cycle reflects Japan's strategy to stabilize inflation while sustaining economic growth.
Market analysts note the yen carry trade's uncertain future as monetary conditions tighten. The BOJ's stance suggests confidence in wage-inflation dynamics, with Ueda emphasizing 'careful scaling back' of stimulus measures. cryptocurrency markets remain watchful for ripple effects across global liquidity conditions.