Japan's Central Bank Shifts Course After Decades

The Bank of Japan has raised its policy rate to 0.75%—the highest level since the early 1990s. This marks a dramatic departure from years of accommodative monetary stance that had kept borrowing costs near zero.

What matters for global markets: tighter conditions in Japan ripple across asset classes. Higher rates typically drain liquidity from risk-on trades, putting pressure on growth-sensitive assets and emerging market instruments. For crypto investors, this signals a broader shift in the global financial environment—one where easy money is no longer the baseline assumption.

The rate cycle change also affects carry trades and cross-border capital flows, historically significant drivers of cryptocurrency volatility during macro transitions.