Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Japan Eyes First Interest Rate Hike in 11 Months

Japan Eyes First Interest Rate Hike in 11 Months

CoinomediaCoinomedia2025/12/13 12:27
By:Isolde VerneIsolde Verne

Japan could raise interest rates for the first time in 11 months amid inflation concerns and yen weakness.Japan Shifts Gears on Monetary PolicyInflation and Yen Weakness Prompt ActionMarkets Brace for Rate Path Ahead

  • BOJ expected to raise rates after 11-month pause.
  • Inflation and weak yen drive the policy shift.
  • Markets prepare for a potential tightening cycle.

Japan Shifts Gears on Monetary Policy

Japan may be on the verge of its first interest rate hike in 11 months, marking a major turn in its long-standing ultra-loose monetary policy. The Bank of Japan (BOJ) is reportedly preparing to raise its short-term rate from 0.50% to 0.75% at its upcoming policy meeting, reflecting rising pressure from persistent inflation and a weakening yen.

This would be the first rate increase since January, signaling a gradual exit from the BOJ’s long era of negative or near-zero rates. The move comes as consumer prices in Japan have consistently stayed above the central bank’s 2% inflation target—forcing policymakers to take action.

Inflation and Yen Weakness Prompt Action

The expected Japan interest rate hike is largely driven by sustained price increases and currency depreciation. Japan’s yen has lost value against major currencies, making imports more expensive and contributing to domestic inflation.

In response, the BOJ appears ready to tighten monetary policy, a significant shift after years of maintaining near-zero rates to stimulate growth. The rise in Japanese government bond yields also suggests that markets are already pricing in the higher rate environment.

Economists believe the hike is only the beginning of a potential series of gradual increases as the BOJ attempts to balance inflation control with economic stability.

🇯🇵 NEW: Japan might see its first rates increase in 11 months. pic.twitter.com/uwwOyFADem

— Cointelegraph (@Cointelegraph) December 13, 2025

Markets Brace for Rate Path Ahead

Global investors are closely watching the BOJ’s next steps. A rate hike would not only impact Japan’s domestic market but also influence international capital flows and currency exchange trends.

While the upcoming policy move marks a departure from Japan’s historically dovish stance, BOJ officials have hinted that future hikes will depend on economic data, wage growth, and global financial conditions. For now, the markets are adjusting to a Japan that’s slowly joining the global trend of tightening monetary policy.

Read Also:

  • Japan Eyes First Interest Rate Hike in 11 Months
  • Firms Now Hold Over 1M BTC in Massive Adoption Shift
  • US Keeps Nasdaq 100 Strategy Intact
  • Massive $90B Drop Shocks Crypto Market
  • Trump Wants Interest Rates at 1% by 2026
0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!
© 2025 Bitget