Bank of Japan raises rates to the highest level in 30 years. Would be a shame if the BoJ and Opex ruined the Santa rally.

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If the BOJ missteps even a little, yields move fast and nothing stays local anymore. This is one of those quiet moments that only feels boring until it isn’t.



Japan’s central bank on Friday raised its policy rate to a three-decade high, marching ahead with its policy normalization, as inflation has stayed above its target levels for nearly four years now.

The Bank of Japan raised benchmark rates by 25 basis points to 0.75%, their highest level since 1995, and in line with expectations of economists polled by Reuters.

Despite the move, the BOJ said that real interest rates are expected to remain “significantly negative,” adding that accommodative financial conditions will continue to firmly support economic activity.

Japan embarked on policy normalization last year, abandoning the world’s only negative interest rate regime that had been in place since 2016. Since then, the BOJ has consistently maintained its stance on gradually lifting rates, stating that its goal was to see a “virtuous cycle” of rising wages and prices.

https://www.cnbc.com/2025/12/19/bank-of-japan-boj-rate-cpi-inflation-takaichi-ueda.html