Bank of Japan Raises Interest Rate to 0.75%

2 mins mins

Key Points:

Japan’s interest rate increases to 0.75%, first in decades.
Highest rate since 1995, marking change in policy.
No immediate effects on cryptocurrencies like Bitcoin or Ethereum.

Kazuo Ueda, Governor of the Bank of Japan, announced a policy interest rate increase to 0.75% today, setting a historic high since 1995 in Tokyo.

This signals a key shift from Japan’s prolonged ultra-low interest era, poised to impact economic dynamics but showing no immediate effects on cryptocurrency markets.

Bank of Japan Ends 30-Year Low-Rate Era

The Bank of Japan has adjusted its policy interest rate from 0.50% to 0.75%, a level unseen since 1995. Governor Kazuo Ueda stated that despite the Japanese economy showing some weakness, it is on a path to recovery. Ueda emphasized that the significance of the rate being at this level is not special. Bank of Japan Monetary Policy Meeting Report December 2025.

The interest rate hike signals the end of Japan’s 30-year era of extremely low rates. While the effects of previous rate hikes have resulted in strong tightening, Ueda noted that those effects are currently not as potent. The Bank plans to monitor the economic and price impact closely before considering further changes.

Market reactions have been largely centered around understanding the broader economic implications, as there has been no direct impact on cryptocurrency markets like Bitcoin or Ethereum. Ueda highlighted that future decisions will be based on ongoing assessments of the economic outlook.

Economic Stability Prospects and Cryptocurrency Insight

Did you know? Japan’s benchmark interest rate has not been this high since September 1995, marking a crucial shift in monetary policy after decades of near-zero rates.

As of December 20, 2025, Ethereum (ETH) trades at $2,991.15, with a market cap approximately at $361.02 billion. ETH’s 24-hour trading volume declined by over 51%, yet its price remains 1.02% higher compared to the previous day. Data sourced from CoinMarketCap.

ethereum-daily-chart-2267 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 12:13 UTC on December 20, 2025. *Source: CoinMarketCap*

Coincu research indicates that Bank of Japan’s interest rate policy change may increase economic stability, though immediate cryptocurrency effects are limited. Future implications for both traditional and digital markets depend on wage and price developments, reflecting general economic trends.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.