Former BoJ Exec Rules out Another Rate Hike This Year, Bitcoin Dips Below $59K
Former Bank of Japan (BoJ) executive Makoto Sakurai has indicated that another interest rate hike is unlikely this year, following Japan’s recent increase which caused Bitcoin to crash.
On Monday, Bitcoin dipped below the $59,000 mark trading at $58,388 during press time.
“They won’t be able to hike again, at least for the rest of the year,” a former Bank of Japan board member Makoto Sakurai said in an interview. “It’s a toss-up whether they can do one hike by next March,” reports The Japan Times.
On August 7, BoJ Deputy Governor Shinichi Uchida also confirmed that Japan will continue with its low rates due to the weak yen and global financial instability.
The decision to raise rates was initially intended to curb inflation and stabilize the Japanese economy. However, Sakurai’s remarks suggest a more cautious approach moving forward, considering the potential impact on both domestic and global markets.
According to analysts at Greeks.live the recent dovish comments from the BoJ have also given the crypto market confidence, and despite the constant stream of negative market news, sentiment is more optimistic this week.
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