Bank of Japan accelerates rate hikes to fastest pace in 36 years

Bloomberg said on September 18 that the Bank of Japan had raised interest rates again, bringing the pace of hikes to its fastest in 36 years. The yen’s reported decline drew contrasting interpretations. One commentator claimed it fell 1.3% despite the hike and argued Japan faces a “policy trap”: further hikes would hurt the bond market, while stopping would weaken the currency. Another interpreted the BOJ’s stance as reluctance to keep tightening and argued that this was positive for financial markets and helped Bitcoin rise above $81,000.