🦋 The butterfly effect of Japan's interest rate hike is back.

The Governor of the Bank of Japan, Kazuo Ueda, stated that he is considering raising the interest rate from 0.5% to 0.75% in December.
Core inflation has reached 3%, exceeding the 2% target.
Looking back at last year: On July 31, an unexpected interest rate hike of 0.15% led to a sharp decline in global markets. U.S. stocks, Japanese stocks, and the entire Asia-Pacific region were affected, with the Nikkei index even triggering a circuit breaker ⚠️.
Reason: The yen is a globally low-cost borrowing currency → Carry trades are forced to close → Funds flow back to Japan → Global assets decline
This time is different: the market has expectations, and risks have been partially priced in.
Short-term fluctuations are controllable, no need to panic.

On 12/10, the Fed may cut interest rates to support the market.
📌 Suggestion: Pay attention to the borrowing costs of the Japanese yen and the movements of the Federal Reserve. Short-term risks are manageable, but stay vigilant!
‍#日本加息 #美联储降息 #日元套利