Bank of Japan to Raise Interest Rates: From 0.5% to 0.75%, First Increase in 30 Years

【Chain Wen】The Bank of Japan’s rate hike signals are getting closer. According to sources, the Bank of Japan will hold a monetary policy meeting on the 18th and 19th of this month, and it is very likely to raise the policy interest rate— from the current 0.5% to 0.75%, a 25 basis point increase. What does this level mean? It will be the highest since 1995, in other words, a number not seen in the past 30 years.

The signals are already very clear. BOJ Governor Ueda and other senior officials have been signaling a rate hike, and among the 9 members of the Policy Board (including the Governor and Deputy Governor), at least half are expected to vote in favor. Currently, no member has explicitly opposed, and even the Japanese government has not voiced any opposition.

However, the BOJ is still observing one thing—whether the rate hike will trigger a stock market crash or a sharp appreciation of the yen. These market disturbances are factors they will weigh before making a final decision.

If the rate hike is implemented this Friday, it will be the second rate increase since January 2025, and the second adjustment in 11 months. For investors who continuously monitor global liquidity changes, the BOJ’s moves often influence the overall market risk appetite, especially affecting yen-denominated assets and cross-border capital flows.