Finance News
By Dan Saada
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Six Hikes Since March 2024. To understand why Japan keeps moving, you have to go back to the oil problem.
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Bank of England Holds Firm at 3.75%. Not every central bank is moving the same direction. The Bank of England kept its rate at 3.
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What the BOJ's Move Means for Markets. Japan's reliance on Middle Eastern crude is the core vulnerability here.
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Japan just moved. The Bank of Japan lifted its benchmark interest rate to 1.25% on Friday — the highest level the country has seen since 1995 — as surging energy costs tied to…
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The board voted 7-2 in favor of the hike. Toichiro Asada and Ayano Sato dissented. Markets had pretty much seen it coming before the meeting even wrapped up, so the immediate…
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To understand why Japan keeps moving, you have to go back to the oil problem. Japan imported 94% of its crude oil from the Middle East in 2025, most of it flowing through the…
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And Japan isn't alone in tightening. The Federal Reserve raised its target range to 3.75%-4.00% on Wednesday — its first increase since 2023.
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The yen situation adds another layer. In August, Tokyo and Washington intervened jointly in currency markets after the yen hit a 40-year low.
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See also: Bitcoin Stays Steady Near $76,500 Following Feds First Rate Hike Since July 2023
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That contrast with Japan is pretty stark. Japan is hiking because energy costs are feeding directly into inflation.
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Economists think Japan's rate could reach 1.5% by March 2027, with a further possible rise to 1.75% in the second quarter after that.
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Japan's reliance on Middle Eastern crude is the core vulnerability here. Ninety-four percent is an enormous share — it leaves almost no buffer when a conflict anywhere near that…
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The BOJ's cautious tone throughout the tightening cycle has been deliberate. It's not the Fed.
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Six hikes since March 2024. Rate at 1.25%. Dissent from two board members. And a coordinated currency intervention with the US already in the books for August.
The Currency Analytics
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