🇯🇵 Is Japan’s “Cheap Yen” Era Finally Ending? 💴🚀

The Bank of Japan is standing at a historic crossroads. With the Yen hovering near the 155 per USD mark, the pressure to act has reached a breaking point. For the first time in nearly a year, a major policy shift is on the horizon.

Here is what you need to know about the anticipated December 19, 2025, rate hike:

🔻The Big Move: Markets are pricing in a 98% probability that the BoJ will raise interest rates by 25 basis points to 0.75%.

🔻The "Weak Yen" Problem: A devalued currency has sent import costs for food and fuel skyrocketing, keeping inflation above the 2% target for 19 consecutive months.

🔻A Policy U-Turn: This move signals a definitive exit from Japan’s decade-long ultra-loose monetary policy as officials prioritize price stability over cheap borrowing.

🔻What’s Next: If this hike doesn't stabilize the Yen, experts predict even further tightening could be coming in early 2026.

With government officials seemingly giving the green light, the "Land of the Rising Sun" is officially preparing for the "Land of Rising Rates."

How will this affect global markets? Stay tuned as we track the BoJ’s decision this Thursday.