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 Asia, 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 that this rate hike is likely, but the market is watching closely to see how aggressive the Bank of Japan will be about 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.
Changes in Japan’s monetary policy could have an “unexpected” impact on Bitcoin, according to a previous analysis cited by CriptoNoticias. Especially in the foreign exchange 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 of this year, there were already warnings that Japan would raise interest rates to the highest level 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.
