The post Crypto Market Braces for Impact as BOJ Signals Further Rate Cuts Despite Yen Crash appeared on BitcoinEthereumNews.com.

The crypto market has been on edge as more information has come to light concerning the economic meeting held at the BOJ. The minutes suggest that the central bank is poised to deliver further cuts in interest rates, with the Yen crashing as a result of the last announcement. BOJ Policy Debate Suggests More Rate Cuts Are Likely The most recent reports about the meeting of the Bank of Japan in December have stressed that interest rates may continue to rise. Some members said that Japan’s interest rates are highly abnormal and that this has had effects on the falling value of the yen and the inflation rate. One of the board members also highlighted that Japan has the lowest real policy rate among the biggest economies. “Japan’s real policy interest rate is by far at the lowest level globally,” they said. “It is appropriate for the bank to adjust the degree of monetary accommodation.”  As pointed out, currency fluctuations are progressively having an impact on domestic prices. As a result, the question of exchange rate stability is an ever-changing topic under discussion within the BOJ. The bank has recently raised its benchmark interest rate to 0.75% at its last board meeting, which is the highest in the past three decades. Some board members agreed that the current rates are much lower than the neutral rate after adjusting it for the rate of inflation. The rest hinted that there might be further increases in the coming months. “Timing the increase in the policy rate might mitigate future pressure to inflation and thus keep long-term interest rates lower,” said another board member. Economists forecast another increase in the coming six months, and the terminal rate is projected between 1.25% and 1.50% in 2027. Recently, this decision has happened at the same…

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Filed under: News - @ December 29, 2025 5:06 am