# BOJRateHikesBackontheTable

#BOJRateHikesBackontheTable
JPMorgan’s expectation that the Bank of Japan could raise rates twice in 2025, eventually pushing policy rates toward 1.25% by the end of 2026, is a major shift in the global macro landscape. For decades, Japan’s ultra-loose monetary policy made the yen one of the cheapest funding currencies in the world. That cheap liquidity didn’t stay confined to Japan it flowed into global markets, supporting equities, bonds, and increasingly high-beta assets like crypto. As Japan gradually normalizes policy, the implications extend well beyond domestic markets.
Rising Japanes

BOJ Tightening, Yen Liquidity & Crypto Risk Allocation Is the Yen Carry Trade Unwind Back on the Table?
JPMorgan’s expectation that the Bank of Japan could hike rates twice in 2025, with policy rates potentially reaching ~1.25% by end-2026, may look modest in isolation. But in a global system built on decades of cheap yen funding, this shift carries outsized implications for cross-asset risk allocation including crypto.
This isn’t just about Japan. It’s about global liquidity plumbing.
Why the Yen Matters More Than Its GDP Share
For years, the Japanese yen has functioned as one of the world’

🇯🇵 BOJ Rate Hikes Back on the Table
Discussions around potential BOJ rate hikes are drawing global attention. Any shift in Japan’s monetary stance could influence currency markets, bond yields, and broader risk sentiment worldwide.
#BOJRateHikesBackOnTheTable #MonetaryPolicy #GlobalMarkets #MacroEconomics #FXMarkets