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🇯🇵 Japan implements its biggest rate hike in 30 years — raising policy rates from 0.5% to 0.75% 💥
📉 However, the yen weakened. Why?
The change was already widely priced in advance
Markets doubt that the BOJ will become aggressively hawkish with subsequent hikes
A classic case of “buy the rumor, sell the news” in FX markets
👀 What does this signal:
Yen bulls were expecting confirmation of a sustained tightening cycle — instead, they received caution. Until the BOJ signals more decisive action, the yen may remain under pressure.
💴 Conclusion:
Policy change alone is not enough. Markets want commitment, not just a headline increase.
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