Bank Of Japan Raise Interest Rates 2025 : Check Changes, New Updates & Amount

 The Bank of Japan has raised the policy rates 0.5% to 0.75% as expected and the officials revealed the increments in interest on Friday, 19th December 2025. This move marks the highest borrowing costs for Japan in 30 years which made effective on the huge monetary support and near zero borrowing costs. This decision reflects on Japan’s monetary policy as it moves away from decades of losses and negative interest rates. The BOJ has signaled its further hikes and taken this landmark step in the ending decades of huge monterey support and zero borrowing costs. 

Bank Of Japan Raise Interest Rates 

This move in Japan will stably hit its 2% inflation target backed by wage gains and which make ready for the normalisation of monetary policies. This move takes interest rates to levels since 1995 and this decision takes a prolonged battle with deflation. The slugging Yen has increased 

the cost of imported goods and put a strain on the Japanese household by this decision. This increased interest rates will have an effect on the Bitcoins and which is triggered up to 20-30%. 

Through this bitcoins are holding around $85K to $87K which would be good for the investors. According to the experts, “BOJ signals that it is ready to hike potentially 1% higher by late 2026 depending on wage growth and sustained inflation in the country”. The consumers get the prices of bitcoins with targeted 2% increments for over three and a half years and which is recently closer to 3%. 

The Governor Kazuo Ueda makes some statements about the banks and economy which remains true. The bank will continue to raise rates if economic forecasts hold true and estimations are dependent on the neutral rates which levels up the stimulates nor restricts the economy to be between 1.0% and 2.5%. The banks may have more hikes on the horizon in the upcoming 2026 and 2027. 

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