BOJ Lifts Rates to 1.25% as Bitcoin Tops $77,000 and Yen Weakens
Updated
Updated · CoinDesk · Sep 18
BOJ Lifts Rates to 1.25% as Bitcoin Tops $77,000 and Yen Weakens
3 articles · Updated · CoinDesk · Sep 18
Summary
Bitcoin climbed to $77,400 and BTC/JPY rose 0.5% to 12.06 million yen after the Bank of Japan raised its benchmark rate by 25 basis points to 1.25%, a 31-year high.
The BOJ said sticky inflation and risks of overshooting its 2% target—driven by higher import and energy costs—forced its second rate increase in three months.
The yen still fell, with USD/JPY rising to 156.70 from 156.20, suggesting the hike did not disrupt yen-funded carry trades that remain attractive because Japanese rates are far below U.S. levels.
That yield gap widened further after the Federal Reserve lifted rates 25 basis points this week to 3.75%-4.00%, easing fears that BOJ tightening would trigger a broader carry-trade unwind across global markets.