Japan’s BOJ May Raise Rates Twice Yearly in 2026–27 to About 1.5–1.75% — Kuroda
Former Bank of Japan (BOJ) Governor Haruhiko Kuroda said the BOJ is likely to raise interest rates twice a year in both 2026 and 2027, taking policy rates to around 1.5%–1.75%. Kuroda cited solid economic conditions in Japan and called for tighter fiscal and monetary policy. He said the yen’s recent level near JPY 157/USD is “somewhat weak,” and warned that Prime Minister Sanae Takaichi’s planned spending and tax cuts could boost inflation and push up bond yields. The comments signal a shift toward a firmer BOJ stance over the medium term and could affect currency and bond markets.
Neutral
Kuroda’s forecast of gradual, predictable BOJ rate hikes over 2026–27 is likely to have mixed effects on crypto markets. Higher global or Japanese yields and a firmer path for the yen can push risk assets lower in the short term as traders reprice interest-rate expectations and reduce carry for speculative positions. That could exert downward pressure on crypto risk appetite (bearish short-term). However, the guidance is gradual (twice per year) and aimed at normalizing policy rather than abrupt tightening; markets typically price in a known, slower path without triggering severe shocks. Over the medium to long term, higher real yields and a stronger yen can dampen speculative flows into crypto but also lead institutions to seek portfolio diversification, which may support crypto demand. Historically, gradual rate normalization (e.g., post-2015 Fed liftoff) caused short-term volatility in crypto but did not end the asset class’s long-term growth. Therefore the overall impact is neutral: short-term downside risk exists, but no strongly bearish structural change is implied.