The post Bank of Japan Keeps Interest Rates Unchanged, Crypto Market To Thrive Now appeared first on Coinpedia Fintech News
The Bank of Japan (BOJ) has decided to keep its interest rates unchanged, maintaining the short-term rate at 0.25%. This marks the third consecutive time the BOJ has opted to hold rates steady, following similar decisions in September and October. Following the announcement, the Japanese yen fell to 155, showing a clear shift towards Bitcoin as investors seek alternative assets.
BOJ Interest Rate Unchanged
On December 19th, the Bank of Japan (BOJ) decided to keep its interest rates unchanged, sticking with a short-term policy rate of 0.25%. This marks the third consecutive hold, with the nine-member board voting 8-1 in favor.
While most of the BOJ board members supported the decision, Naoki Tamura, a policy hawk, pushed for a 0.5% rate hike due to rising inflation concerns. His proposal was rejected.
However, this move, expected by many, reflects the BOJ’s cautious stance amidst uncertainty over U.S. President-elect Donald Trump’s economic plans. Following the BOJ’s announcement, the yen dropped to a one-month low of 155.28 against the dollar before recovering slightly.
BOJ Governor Ueda’s Key Remarks
After the Bank of Japan’s recent meeting, Governor Kazuo Ueda shared important insights about the bank’s decision to keep interest rates unchanged. He noted that real interest rates are still very low, and if the economy and prices follow the bank’s forecast, there could be future rate hikes.
Ueda also mentioned that careful analysis of various economic data will be crucial before making any adjustments to monetary support. He pointed out the importance of understanding the outlook for wages, especially in light of upcoming wage negotiations.
Cryptocurrency To Thrive Soon
With the BOJ keeping interest rates steady, many investors may seek alternatives like cryptocurrency. Low interest rates make traditional savings and bonds less rewarding, leading people to explore assets like Bitcoin.
Bitcoin, now at an all-time high of $108K and a market cap of $2.2 trillion, is expected to continue growing and could become a strong hedge against inflation.
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