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BOJ could lift rates quickly, pushing borrowing costs above 2%

The current BOJ benchmark rate is about 1%, while the 10-year Japanese government bond yield is near 2.8%.

Reported · Written up by our desk · Government Bonds

CoinDesk reports former Bank of Japan official Tsutomu Watanabe, now an economics professor at the University of Tokyo, warned the BOJ may accelerate rate hikes later this year and push its benchmark rate above 2% as the yen weakens.

Watanabe said the BOJ rate is currently around 1%, after recent hikes, and that Japan's 10-year government bond yield is hovering above 2.8%, according to TradingView data cited by CoinDesk.

CoinDesk also notes the yen has depreciated about 60% to 162.36 per U.S. dollar since early 2021, and is down about 3% so far this year, even after policy tightening.

The piece adds that CoinDesk framed two competing market implications of faster BOJ tightening, including the possibility of a yen floor, and the potential to pressure risk assets, including bitcoin, given the yen and BTC have been moving together against the dollar at times.

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