Bank of Japan signals interest rate hike, wage-price transmission becomes a key trigger point

【BlockBeats】The Bank of Japan recently sent an important signal. Bank of Japan Governor Kazuo Ueda stated recently that once wage growth begins to transmit to prices, the likelihood of interest rate hikes will significantly increase.

The logic behind this is quite clear: Japan has long faced inflationary pressures, and the linkage between wage growth and rising prices is a core indicator for the central bank to decide whether to initiate a tightening cycle. If this transmission mechanism is confirmed, then rate hikes will shift from “possible” to “almost certain.”

What does this policy signal mean for the crypto market? On one hand, expectations of tightening by major central banks often raise global interest rates, which may put pressure on risk assets; on the other hand, Japan, as one of the key sources of global liquidity, its policy shift will also influence capital allocation choices across different assets.

Next, we need to watch whether this is just “verbal easing” or if it will truly lead to action. The market will continue to interpret every move by the central bank.