What It Means for Crypto Markets
The Bank of Japan held its benchmark interest rate steady at 0.75% on Friday, while upgrading economic growth and inflation forecasts in a decision that carries significant long-term implications for cryptocurrency markets.
As Japan navigates a collision between monetary tightening and fiscal expansion ahead of snap elections, crypto markets face growing exposure to yen-driven liquidity shifts and potential unwinding of carry trades.
The decision came in a split 8-1 vote, with board member Hajime Takata casting a lone dissent in favor of raising rates to 1.0%. Takata argued that mounting inflation pressures and improving global economic conditions support further tightening.
The BOJ raised its real GDP growth forecasts…
