BOJ Rate Hike Strains Mortgages and Investment
BOJ’s first 2025 rate hike will push up mortgage costs, damp private investment and raise government debt interest, economist Hideo Kumano warns.
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BOJ’s first 2025 rate hike will push up mortgage costs, damp private investment and raise government debt interest, economist Hideo Kumano warns.
Markets expect the BOJ to lift rates to 0.75% on December 19—the biggest hike in 30 years—as persistent inflation tests Japan’s recovery.
On December 10, 2025, the U.S. Fed cut rates by 25 basis points, the third straight monthly cut and sixth since September 2024, but cautioned that future easing will face a higher bar.
The US Fed on Dec 11 cut rates by 25bps to 3.5–3.75%, its third cut of the year, aiming to stabilize jobs and steer inflation toward 2%.
The Chinese mainland cut its one-year and over-five-year LPRs by 10bps to 3.0% and 3.5%, aiming to lower borrowing costs and boost market confidence.
Stephen Innes of SPI Asset Management highlights the Federal Reserve’s crucial role in global currency markets and the need to balance rate hikes to prevent a currency crisis.