Bank of Japan's cautious approach to interest rate increase and its impact on the yen and high-risk investments.
The Governor of the Bank of Japan (BOJ), Kuroda, once again expressed his cautious stance on interest rate hikes in January. He emphasized the need to pay special attention to economic risks before making any decisions to increase interest rates. Kuroda stated that the Bank of Japan aims to stabilize inflation resulting from demand growth, not inflation caused by the depreciation of the yen. This position has shifted market expectations for an interest rate hike to the March meeting, leading to the recent weakening of the yen. It is worth noting that an interest rate hike in Japan poses a challenge to high-risk assets, potentially strengthening the yen and triggering the sale of high-risk investments like Bitcoin.
