Japan Maintains its Policy Rate, Inflation Forecasts Rise Slightly, and Crypto Market Walks Silently

• The Bank of Japan has not changed its policy rate of 0.75%.
• Prices across the crypto market are more or less the same as yesterday.
• US markets may have worked as an additional support factor.

The Bank of Japan has decided to keep its policy rate unchanged at 0.75%. There is a slight increase in projected inflation, but optimism is sufficient for the growth of Japan. Meanwhile, the crypto market has remained largely unchanged, with possible support from US markets, which closed on a high note again.

Rate and Projected Inflation in Japan

The Bank of Japan (BOJ) last revised its rate from 0.50% to 0.75% in December 2025. It has now decided to keep it unchanged following the 2-day meeting, which ended on Friday. A report by Reuters has underlined that this was an expected decision, also mentioning that a proposal to hike the rate was supported by Board member Hajime Takata. The proposal didn’t find enough takers to process it further.

BOJ has also revised the consumer inflation forecast to 1.9% for fiscal year 2026. It was earlier 1.8%. The revision has been drawn after noting a balanced level between economic and price outlook. BOJ, in a report, has said that wages and prices rising moderately in tandem will be sustained, allowing inflation to rise moderately.

Reaction of Global Crypto Market

No matter the region, every financial decision taken becomes one of the key factors that affect the global crypto market. The recent decision by BOJ is no different, considering the crypto market has remained steady as it was yesterday. Fred Neumann, chief Asia economist at HSBC in Hong Kong, saying that the outlook of the central bank hints at growing hawkishness has possibly fueled the support for the crypto market.

The crypto market cap has declined, though. It is down by 0.26% to $3.03 trillion, with the FGI rating shifting to 34 points and the Altcoin Index tilting towards 29 points. BTC and ETH have lost their much-anticipated support levels of $90k and $3k, respectively. Bitcoin tokens are now trading at $89,454.23, and Ethereum tokens are exchanging hands at $2,963.79.

US Markets Recover, Again!

Two US indexes, Nasdaq and S&P 500, showed optimistic signs yesterday. They once again closed on a high of 0.91% and 0.55%, respectively. Dow also surged by 0.63% – most of it being credited to Trump’s U-turn on Greenland tariffs. Nevertheless, this optimism has possibly added as a supportive component for the crypto market to sustain its movement on the price chart.

Volatility remains persistent across the crypto market and every other industrial segment. Gregg Abella, CEO at Investment Partners Asset Management, has articulated the ongoing situation by saying that one does not know if it would be a Christmas morning or Friday the 13th.

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