{"id":15670,"date":"2022-12-20T15:42:12","date_gmt":"2022-12-20T15:42:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bank-of-japans-kuroda-shocks-markets-by-raising-the-benchmark-rate-to-0-5-from-0-25-economics-bitcoin-news\/"},"modified":"2022-12-20T15:42:12","modified_gmt":"2022-12-20T15:42:12","slug":"bank-of-japans-kuroda-shocks-markets-by-raising-the-benchmark-rate-to-0-5-from-0-25-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bank-of-japans-kuroda-shocks-markets-by-raising-the-benchmark-rate-to-0-5-from-0-25-economics-bitcoin-news\/","title":{"rendered":"Bank of Japan’s Kuroda Shocks Markets by Raising the Benchmark Rate to 0.5% From 0.25% \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Japanese yen is up 3.42% against the U.S. dollar on Tuesday as the Bank of Japan surprised the world by deciding to allow the benchmark interest rate to rise to 0.5% from 0.25%. The Japanese central bank was one of the only banks worldwide to hold off on raising benchmark interest rates, as policymakers have kept the government bond yield rate close to zero since 2016.<\/strong><\/p>\n

Japanese Central Bank Lifts Rates for the First Time in 6 Years<\/h2>\n

During the last two months, there\u2019s been a lot of discussion surrounding the Bank of Japan\u2019s (BOJ) governor, Haruhiko Kuroda, as the BOJ chief will be replaced soon by a successor. Kuroda, however, shocked global markets on Dec. 20, when he detailed<\/a> that the BOJ would allow Japan\u2019s 10-year bond yields to increase to 0.5% from the previous upper limit of 0.25%.<\/p>\n

The move follows the yield curve control mechanism the Japanese central bank introduced in Sept. 2016. The BOJ explained<\/a> on Tuesday that the change aims to \u201cimprove market functioning and encourage a smoother formation of the entire yield curve, while maintaining accommodative financial conditions.\u201d<\/p>\n

\"Bank
On Tuesday, Dec. 20, 2022, at 8:41 a.m. (ET), the Japanese yen was up 3.42% in 24 hours and 4% higher over the last five days.<\/figcaption><\/figure>\n

Representatives from Mizuho Bank told CNBC in an interview that the move reflected the belief that there will be a hawkish pivot from the BOJ going forward. However, these hawkish bets may not come to fruition the financial institution elaborated on Tuesday. \u201cPopular bet does not mean that is the policy reality or the intended policy perception,\u201d Mizuho Bank added.<\/p>\n

Gold bug and economist Peter Schiff is betting that the BOJ will raise rates again. \u201cThe Bank of Japan blinked and pivoted in the opposite direction,\u201d Schiff tweeted<\/a>. \u201cAfter artificially holding the 10-year JGB yield at .25%, the BOJ just raised the target rate to .5%. More hikes are coming. In the U.S. this means the dollar and asset prices will fall and inflation will rise.\u201d Hedge fund manager James Lavish said<\/a> the BOJ has attempted to make one last goal.<\/p>\n

\u201cAt this point, the Bank of Japan has pulled the goalie and is hoping for a last-second tying goal,\u201d Lavish tweeted. \u201cMaybe get to overtime. Maybe somehow pull it out. Except they\u2019re down 5-1. The game is over, and they just don\u2019t know it yet.\u201d<\/p>\n

At 8:41 a.m. (ET), the Japanese yen was up 3.42% against the U.S. dollar during the last 24 hours and 4% higher over the last five days. 30-day statistics indicate the yen has gained 5.73% against the greenback as well. Six-month metrics show the yen is up 1.81% and year-to-date the yen is down 13.25% against the dollar.<\/p>\n

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0.25%<\/a>, 0.5%<\/a>, 10-year bonds<\/a>, 2016<\/a>, Bank of Japan<\/a>, Bank Rate<\/a>, Bank Rates<\/a>, Benchmark Rate<\/a>, BOJ<\/a>, bonds<\/a>, economics<\/a>, Economist<\/a>, Economy<\/a>, Gold Bug<\/a>, hedge fund manager<\/a>, Increased Rate<\/a>, inflation<\/a>, James Lavish<\/a>, Japan<\/a>, Japan economy<\/a>, Japanese central bank<\/a>, Japanese yen<\/a>, Mizuho bank<\/a>, Peter Schiff<\/a>, threshold<\/a>, upper limits<\/a>, yen<\/a>, yield curve control mechanism<\/a><\/div>\n<\/div>\n

What do you think about the BOJ decision to allow rates to rise to 0.5% from 0.25% on Tuesday? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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