Recent developments from the Bank of Japan are indeed worth paying attention to. According to informed sources, the BOJ not only plans to announce a rate hike next week but will also continue to push forward, with interest rates very likely surpassing the 0.75% threshold.

What's even more interesting is that some central bank officials have an extremely hawkish stance—they believe that even if rates are raised to 1%, it still falls far short of the true neutral interest rate level.

A detail worth considering here is that the nominal neutral interest rate range previously set by the BOJ was 1% to 2.5%. But now, officials generally feel that this range might already be problematic itself; even with recalculations and adjustments, the range is unlikely to change significantly. In other words, they imply that the room for this rate hike cycle could be much larger than market expectations.

Don't forget the background: Japan has been trapped in a super-low interest rate policy for decades. Now, suddenly shifting towards continuous rate hikes signifies a complete pivot in monetary policy. The impact on the global liquidity environment is naturally self-evident.

What are your thoughts? What kind of impact will this aggressive rate hike cycle by the BOJ have on global asset prices? Feel free to share your thoughts in the comments.