Bank of Japan Minutes Keep Further Rate Hikes in View After October Hold

The Bank of Japan (BOJ) kept further interest rate increases in view in newly released minutes of its September meeting, a policy path relevant to yen-funded trades across global markets, including crypto.

Board members agreed to adjust the level of monetary accommodation as economic activity and prices change. That position leaves room for further increases without setting a fixed pace.

The Policy Board voted 7-2 on Sept. 18 to raise the policy rate to about 1.25%. The increase took effect Sept. 24.

The BOJ held its overnight call-rate guideline at about 1.25% on Oct. 30. The BOJ’s Nov. 2 outlook also left further rate increases in view if the economy and prices develop as forecast.

Yen carry trades use low-cost yen borrowing to finance investments with higher returns. That connection makes changes in Japanese interest rates relevant to global markets, including crypto.