Why Is Japan Considering Interest Rate Hikes in 2025?
Japan's central bank signals a potential shift toward higher interest rates by 2025, marking a cautious departure from its ultra-loose monetary policy. Deputy Governor Shinichi Uchida emphasized a data-driven approach, stating rate hikes will proceed only if economic conditions align with projections. Governor Kazuo Ueda echoed this sentiment, underscoring the need for meticulous analysis of domestic and global economic trends before any October policy adjustments.
The Bank of Japan's pivot reflects growing confidence in the nation's business climate, despite persistent pressure from U.S. tariffs on exports. This MOVE could recalibrate liquidity dynamics in financial markets, with implications for both traditional assets and cryptocurrencies.
