⚠️ BOJ HOLDS — BUT THE PRESSURE IS STILL ON ⚠️
The Bank of Japan just announced its interest rate decision, and at first glance, nothing changed.
📌 BOJ Interest Rate: 0.75%
📌 Forecast: 0.75%
📌 Previous: 0.75%
No surprise. No reaction. No headlines.
But underneath, this decision says a lot more than it seems.
🇯🇵 Japan is now sitting at its highest interest rate level in around 30 years, while inflation pressure, wage growth, and stress in the bond market remain unresolved.
Why this matters 👇
🔹 BOJ is stuck
Raise rates ➝ government debt costs jump
Cut rates ➝ the yen weakens even more
🔹 Bond market stress is growing
Long-term JGB yields are near multi-decade highs, and bond prices have already seen historic declines.
🔹 Yen weakness continues
Even after tightening, $JPY hasn’t shown sustained strength, suggesting markets think policy is still behind the curve.
🌍 Global impact matters
Japan is the largest foreign holder of US Treasuries. Any instability in Japanese rates or the yen can spill into global bonds, equities, and FX markets.
This “hold” decision isn’t stability.
It’s delay.
⏳ BOJ is buying time — and time is getting expensive.
Watch the yen.
Watch JGB yields.
Watch global volatility.
Because when Japan finally loses control,
the impact won’t stay local. 🌊
