The Bank of Japan will keep interest rates unchanged, allowing the Crypto market to thrive
The Bank of Japan (BOJ) kept its short-term interest rate unchanged at 0.25%. This is the third consecutive time the BOJ has chosen to keep rates on hold, following similar decisions in September and October. Following the announcement, the Japanese yen fell to 155 as investors sought alternative assets, signaling a clear shift to Bitcoin.
BOJ interest rate unchanged.
In the year On December 19, the Bank of Japan (BOJ) decided to keep interest rates unchanged with the short-term policy rate stuck at 0.25%. This is the third time in a row that the nine-member board voted 8-1.
A majority of BOJ board members supported the decision, while policy hawk Naoki Tamura left the rate up to 0.5% due to rising inflation. His proposal was rejected.
However, this widely expected move reflects the BOJ's cautious stance amid uncertainty over US President-elect Donald Trump's economic plans. Following the BOJ announcement, the yen fell to a one-month low of $155.28 before recovering slightly.
After the Bank of Japan's recent meeting, Governor Kazuo Yueda shared important insights into the Bank of Japan's decision to keep interest rates unchanged. He pointed out that the actual interest rate is still very low and said that if the economy and prices follow the bank's forecast, there may be future rate hikes.
Yuda noted that careful analysis of various economic data is critical before making any adjustments to funding. He pointed out the importance of understanding the salary perspective, especially in future salary negotiations.
Cryptocurrency grows rapidly
With the BOJ keeping interest rates on hold, many investors may be looking for currency options. Low interest rates make traditional savings and bonds lose their appeal, prompting people to explore assets like Bitcoin.
Bitcoin is now at an all-time high of $108k and has a market cap of $2.2 trillion and looks set to continue to grow and become a strong hedge against inflation.
