Bank of Japan to raise interest rate by 0.25% on December 19 — highest level since 1995
On December 19, the Bank of Japan will increase its benchmark interest rate by 0.25%, marking the largest hike since 1995. This is a significant development for global financial markets, particularly for carry traders.
Source Asia.nikkei
This news signals a tightening of Japan’s monetary policy, which may affect the value of the yen and global investment flows. The rate increase after a prolonged period of ultra-low policy indicates a shift in the country’s macroeconomic approach.
It is expected that this move will alter market participants’ behaviour and could trigger corrections in the currency and financial markets in the near future.
