Bank of Japan Increases Policy Rate to 0.75%: Implications for US Capital Markets and Global Liquidity

Bank of Japan headquarters and financial district background featuring Yen and USD currency symbols to illustrate the interest rate hike to 0.75 percent.

Bank of Japan Increases Policy Rate to 0.75%: Implications for US Capital Markets and Global Liquidity Executive Summary: On December 19, 2025, the Bank of Japan (BoJ) raised its short-term policy interest rate to 0.75%, marking the highest level since September 1995 [1.2]. This strategic shift from decades of ultra-loose monetary policy aims to combat … Read more