- Buy Crypto
- Markets
- Futures
- Spot
- Copy Trade
Earn- More
The Bank of Japan is expected to raise interest rates to the highest level in thirty years
BlockBeats News, December 18th. It is widely expected in the market that the Bank of Japan will raise the overnight call rate by 25 basis points to 0.75% at the policy meeting ending this Friday, marking the first rate hike since January of this year, and the benchmark interest rate will also rise to the highest level since 1995.
Under the leadership of Governor Haruhiko Kuroda, the policy committee is expected to unanimously approve this rate hike decision. In the two previous meetings, some committee members have already expressed support for a rate hike. Recent data shows that Japanese wage growth remains robust, and the impact of U.S. tariffs has been lower than expected, further strengthening market confidence in the rate hike.
Market participants point out that the current focus of investors has shifted to the Bank of Japan's stance on the future interest rate path. Insiders revealed that even if the rate rises to 0.75%, some within the central bank still believe that the "neutral rate" has not been reached, with some officials even considering 1% to be still low.
Analysts believe that if the central bank sends a more hawkish signal, it may help stabilize the yen but could also push up bond yields, putting pressure on the Japanese government as it formulates the budget for the next fiscal year. Overnight Index Swap (OIS) rates show that traders estimate the probability of a rate hike at this meeting to be around 95%, nearly double compared to the beginning of last month.
The policy statement is expected to be released around noon local time, and Kuroda will hold a press conference at 15:30.
You may also like
Crypto’s Next Challenge: Privacy and the Chicken-Egg Dilemma
Key Takeaways Privacy is becoming a central issue as cryptocurrencies move into traditional banking and state-backed systems. Regulatory…
Scaramucci Criticizes Stablecoin Yield Ban’s Impact on U.S. Dollar
Key Takeaways The CLARITY Act’s prohibition on stablecoin yields potentially weakens the U.S. dollar’s competitiveness against the digital…
CLARITY Act Stalls: Why Has the Interest-Bearing Stablecoin Become a Bank’s “Thorn in the Side”?
Key Takeaways The debate surrounding the CLARITY Act is primarily focused on interest-bearing stablecoins and their implications for…
South Korea considers changing the one-bank rule for crypto exchanges: An In-depth Review
Key Takeaways: South Korea is examining the current “one exchange–one bank” model amidst concerns of market concentration, potentially…
India Central Bank Suggests BRICS CBDC Link-Up As Members Explore Alternatives to Dollar Rails
Key Takeaways India’s central bank proposes a CBDC connectivity initiative for the upcoming 2026 BRICS summit. This move…
Anchorage Digital Prepares for IPO with Significant $400M Fundraise
Key Takeaways Anchorage Digital is actively seeking to raise $200 million to $400 million in new funding, with…
China-led CBDC Project mBridge Surpasses $55 Billion in Cross-Border Payments
Key Takeaways The mBridge project has handled over $55 billion in cross-border payments, signaling a shift from traditional…
Scaramucci Remarks on Stablecoin Yield Ban’s Impact on US Dollar
Key Takeaways: The CLARITY Act’s prohibition on yield-bearing stablecoins decreases the competitive edge of the US dollar against…
Key Market Information Discrepancy on January 19th - A Must-Read! | Alpha Morning Report
Yen Weakness Nears Inflation Red Line: Bank of Japan May Be Forced to Hike Early
YO Protocol Suffers $3.7 Million Loss in Unfortunate Swap Incident
Key Takeaways YO Protocol experienced a $3.7 million loss due to a mistaken swap involving YoUSD. The incident…
Most US debanking cases stem from government pressure, says report
Key Takeaways A report from the Cato Institute indicates that most debanking incidents in the US originate from…
South Korea to lift ban on corporate crypto investment: Report
Key Takeaways South Korea’s Financial Services Commission (FSC) is set to end a nine-year ban on corporate crypto…
Russia Targets Illegal Crypto Miners; India Advocates for CBDCs: A Global Overview
Key Takeaways Russia is intensifying efforts to regulate illegal cryptocurrency mining, proposing significant fines and penalties. India’s Reserve…
Russian Pension Fund Overwhelmed by Crypto Inquiries as Mining Income Discussion Intensifies
Key Takeaways In 2025, Russia’s Social Fund received approximately 37 million inquiries, with a significant portion focused on…
Vietnam Sets Mid-January Timeline for Pilot Crypto Exchange Approvals
Key Takeaways Vietnam aims to regulate its growing cryptocurrency market by licensing pilot digital asset exchanges under a…
Former Brazil Central Bank Official Introduces Real-Pegged Stablecoin Offering Yield Sharing
Key Takeaways BRD, a newly unveiled stablecoin by Tony Volpon, a former director of the Central Bank of…
Barclays Invests in Stablecoin Settlement Firm as Tokenized Infrastructure Expands
Key Takeaways Barclays has invested in Ubyx, a U.S.-based startup focused on developing clearing systems for tokenized forms…
Crypto’s Next Challenge: Privacy and the Chicken-Egg Dilemma
Key Takeaways Privacy is becoming a central issue as cryptocurrencies move into traditional banking and state-backed systems. Regulatory…
Scaramucci Criticizes Stablecoin Yield Ban’s Impact on U.S. Dollar
Key Takeaways The CLARITY Act’s prohibition on stablecoin yields potentially weakens the U.S. dollar’s competitiveness against the digital…
CLARITY Act Stalls: Why Has the Interest-Bearing Stablecoin Become a Bank’s “Thorn in the Side”?
Key Takeaways The debate surrounding the CLARITY Act is primarily focused on interest-bearing stablecoins and their implications for…
South Korea considers changing the one-bank rule for crypto exchanges: An In-depth Review
Key Takeaways: South Korea is examining the current “one exchange–one bank” model amidst concerns of market concentration, potentially…
India Central Bank Suggests BRICS CBDC Link-Up As Members Explore Alternatives to Dollar Rails
Key Takeaways India’s central bank proposes a CBDC connectivity initiative for the upcoming 2026 BRICS summit. This move…
Anchorage Digital Prepares for IPO with Significant $400M Fundraise
Key Takeaways Anchorage Digital is actively seeking to raise $200 million to $400 million in new funding, with…
App