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🇯🇵 JAPAN'S 2-YEAR INTEREST RATE RISES TO 1% ⚠️
🔸 The 2-year yield rising to 1% signals that borrowing in yen is no longer free after decades of zero interest rates.
🔸 The market believes that the BOJ may keep interest rates positive, but Japan's economy is still weak, so it is difficult to tighten too much.
🔸 If the global economy slows down or is at risk of deflation, Japan will quickly loosen because they are very afraid of deflation.
🔸 The BOJ will not repeat the old mistakes such as yield curve control or negative interest rates but will adjust more flexibly.
🔸 Higher interest rates make borrowing more expensive, weakening carry trades and causing Japanese capital to return home, reducing global liquidity.
🔸 This is only a temporary state; if the economic cycle weakens, Japan will be the first to pivot and loosen up#JoinGrowthPointsDrawToWiniPhone17 #DecemberMarketOutlook #DecemberRateCutForecast $BTC $ETH