Bank

2024

The Bank of Japan (BOJ) has decided to pause its interest rate hikes due to ongoing market instability. 
In a press release on Wednesday, Deputy Governor Shinichi Uchida stated that the BOJ wants to see the economy stabilize before making any more changes to borrowing costs. 
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 🇯🇵 BANK OF JAPAN: No more rates hikes in near term due to market volatility. That was quick… 😅 <a href="https://t.co/V2MkAtkTYC" target="_blank">pic.twitter.com/V2MkAtkTYC</a>— Radar🚨 (@RadarHits) <a href="https://twitter.com/RadarHits/status/1821130395519226002?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 7, 2024</a>
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Uchida explained that it’s important to keep current monetary policies in place because of recent market ups and downs both in Japan and globally.&nbsp; 
This announcement comes in the wake of a major selloff in global markets, largely attributed to the unwinding of the Japanese YEN “carry trade.” This strategy involves borrowing YEN to invest in higher-yielding assets abroad, and its reversal has led to significant market disruptions.&nbsp; 
According to Jim Bianco, founder of Bianco Research, the BOJ’s interest rate decisions contributed to this recent turmoil. 
However, Toru Suehiro, an economist at Daiwa Securities, believes that although Uchida’s comments suggest no immediate rate hikes are expected, this could change later in the year if the economy improves. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/08/06/economist-calls-for-1-5-fed-rate-cut-amid-market-decline/" target="_blank" rel="noreferrer noopener">Economist Calls for 1.5% Fed Rate Cut Amid Market Decline</a> 
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Bank of Japan Halts Rate Hikes Due to Market Volatility

The Crypto Times

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