The Bank of Japan might really be serious this time.

According to the latest intelligence, Governor Ueda Kazuo has already given a clear signal — at the monetary policy meeting on December 18-19, the current policy rate of 0.5% is expected to be raised to 0.75%. This may not seem like a big number, but if it actually happens, it will be the highest Japanese interest rate level since 1995, marking a major event in 30 years.

From internal voting tendencies, it is expected that more than half of the nine policy members will vote in favor, and the government level also largely approves this direction. In other words, there is not much resistance. This will be the second rate hike by the Bank of Japan this year, and market expectations are gradually adjusting.

Why does this matter to the global market? Think about it — when Japan raises interest rates, arbitrage trades will be reshuffled, and international capital flows will inevitably change. The yen exchange rate, stock and bond prices, and even the crypto market trends could all experience a rhythm adjustment. Ultimately, the global financial markets are interconnected, and a decision by the Bank of Japan could signal foreign capital entering or leaving.

If you are closely watching this area, be sure to keep an eye on the official announcement on December 19. Once the rate hikes happen three times in a row, it is expected that global markets will need to reprice. At that point, whether it’s traditional assets or the crypto market, they will likely need to adapt to the new interest rate environment.