⚠️ BOJ HOLDS — BUT THE PRESSURE IS STILL ON ⚠️
The Bank of Japan just delivered its latest interest rate decision — and on the surface, nothing changed.
📌 BOJ Interest Rate: 0.75%
📌 Forecast: 0.75%
📌 Previous: 0.75%
No surprise. No immediate reaction. No dramatic headlines.
But beneath the calm, this decision speaks volumes.
🇯🇵 Japan is now operating at its highest interest rate level in nearly 30 years, yet inflation pressures, wage dynamics, and growing stress in the bond market remain unresolved.
Why this matters 👇
🔹 The BOJ is trapped
Raise rates ➝ government debt servicing costs surge
Cut rates ➝ the yen weakens further
🔹 Bond market stress is building
Long-term JGB yields are hovering near multi-decade highs, while bond prices have already suffered historic declines.
🔹 The yen remains fragile
Even after tightening, $JPY has failed to show sustained strength, signaling that markets believe policy is still behind the curve.
🌍 Global implications
Japan remains the largest foreign holder of U.S. Treasuries. Any instability in Japanese rates or the yen has the potential to ripple through global bonds, equities, and FX markets.
This “hold” decision isn’t stability.
It’s delay.
⏳ The BOJ is buying time — and time is getting more expensive.
📊 Watch the yen.
📊 Watch JGB yields.
📊 Watch global volatility.
Because when Japan finally loses control,
the impact won’t stay local 🌊
