In the summer of last year, the Bank of Japan (#BOJ) announced a rate hike to 0.25% after lifting off from negative rates in March. This became one of the triggers that led to significant #market volatility as the “yen carry trade” unwound. Sentiment shifted quickly from “how far can hikes go” to “how soon will hikes stop.” On January 24, the BOJ implemented its third rate hike this cycle, raising rates to 0.5% – the highest in 17 years. However, this was perceived as a “dovish hike,” with expectations that future hikes will be slow or may not occur at all. For more: https://lnkd.in/gme-hJDg
