Bank of Japan hikes policy rate to 1%, highest since 1995 and first time in over 30 years, as the board accelerates policy normalization amid weak yen concerns touching 160 against the dollar and rising producer price inflation climbing 6.3% in May driven by energy costs.

Bank of Japan hikes policy rate to 1%, highest since 1995 and first time in over 30 years, as the board accelerates policy normalization amid weak yen concerns touching 160 against the dollar and rising producer price inflation climbing 6.3% in May driven by energy costs.
CNBC
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1% BOJ rates plus a planned ¥2T/month JGB-buying floor from April 2027 makes yen funding less free while Japan still cushions its bond market. Crypto should watch BTC/ETH basis and perp funding before spot narratives: the August 2024 yen-carry unwind showed macro deleveraging can hit risk without any on-chain catalyst. If USD/JPY keeps living near 160, leveraged dollar assets stay exposed every time Tokyo has to defend credibility.

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