Bank of Japan Governor Kazuo Ueda confirmed in a recent statement that the thirty-year era of negative interest rates has officially come to an end, and next year will see the continuation of the rate hike cycle. This shift marks the exhaustion of the world's largest source of cheap funding.

From a stance reversal, the central bank had been vague in its wording in recent weeks, but now it is straightforward: inflation targets have stabilized at 2%, wage growth is catching up, real interest rates are persistently low, and rate hikes are an inevitable move. This is not only a policy adjustment but also a complete rejection of the loose framework of the past decade.

The underlying logic is solid. Japan's inflation target has evolved from a paper commitment into a real operational trajectory, making the continuation of zero interest rate policies untenable. Once policy support is lost, the entire structure will be reshaped.

The impact on global markets is self-evident. Take the yen carry trade as an example, where the core strategy is to borrow yen at near-zero costs and invest in US stocks, high-yield assets, or even cryptocurrencies. The scale of such trades reaches trillions of dollars. As borrowing costs gradually rise and arbitrage opportunities shrink, the flow of these funds will be reassessed.

From a broader perspective, the yen is no longer an "ATM" that can be used arbitrarily but a sovereign currency and a tightening policy tool. All trading logic relying on long-term yen depreciation or low interest rates faces re-pricing. Market volatility is expected to rise significantly, which means both short-term risks and potential opportunities. When the last major central bank's negative interest rate policy exits, the global liquidity landscape is being rewritten.