The Bank of Japan finally dropped the act and raised interest rates to 0.75%. This rate hike is like that rich friend of yours who never charged interest when lending money suddenly saying: 'Bro, from now on, we gotta keep track of the numbers.' But in reality, this is a hawkish move with a dovish twist: - Hawkish in action: A solid rate hike, passed unanimously, showing firm determination. - Dovish in wording: Emphasizing that the environment remains accommodative, calming the market to avoid panic, and hinting there won’t be aggressive consecutive hikes. Japan has always been the global reservoir of cheap money. In the past, the whole world borrowed Japan’s low-cost funds to buy U.S. Treasuries and speculate on U.S. stocks (carry trades). Now that borrowing costs are higher, people will sell off overseas assets and bring the money back to Japan, which isn’t great for risk assets. What do you guys think? Is the yen rate hike market at the bottom or just halfway up the mountain? Let’s chat in the comments