Behind the Bank of Japan's Slow Rate Hike: Why Is It Just Like Letting Off the Gas?

【BlockBeats】The recent interest rate hike by the Bank of Japan has become a hot topic in the market. A senior economist’s recent view is worth noting — he said this rate hike is more like easing off the accelerator rather than an emergency brake. In other words, the pace is a bit slow.

So why is that? The key lies in the interest rate level itself. Even after the rate hike, the Bank of Japan’s interest rate remains at a historic low, and it is far from being considered tightening. Economists believe there is room for further rate hikes next year, but the real decision-making power does not lie with the central bank — it depends on the labor-management negotiations in the spring. Whether wages will increase and the long-term direction are the indicators for the central bank’s next moves.

Therefore, the likelihood of significant changes before June next year is low. Although monetary policy tightening is underway, the pace remains painfully slow. This has profound implications for global liquidity and asset allocation, and friends in the crypto market need to closely monitor such central bank dynamics.