Breaking News: Bank of Japan Set to Raise Interest Rates to 75bps

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With just two days to go, the Bank of Japan (BOJ) is set to deliver one of its biggest interest rate decisions, which could strongly impact the crypto market. 

This time, the move is even more aggressive. Japan is preparing a 75 basis point interest rate hike, its highest level in over 30 years.

History shows that whenever the BOJ raises rates, the Bitcoin price has fallen by 25–30%.

Japan to Hike Interest Rate to 75 Bps

For decades, Japan kept interest rates very low to support growth and fight deflation. However, the situation has changed. Inflation is now above the Bank of Japan’s (BOJ) 2% target, while economic growth remains weak.

On December 19, the BOJ will hold a key policy meeting and is widely expected to raise interest rates. Markets, including prediction platforms like Polymarket, are pricing in a 25 basis point hike with nearly 98% probability.

That said, some experts believe the move could be much stronger. Recent discussions suggest Japanese officials are open to a more aggressive step, with rates possibly rising by up to 75 basis points. If this happens, the policy rate would reach 0.75%, the highest level in over 30 years.