Japan Just Raised Interest Rates To A Level Not Seen Since 1995— And The Yen Carry Trade Is Back

Bank of Japan raises short-term interest rate to 1%, highest level since 1995

Bank of Japan raised short-term rates to 1% (highest since 1995), risking an unwind of the yen carry trade. Risk-asset liquidations threaten venture funding runway; August 2024 showed how BOJ rate hikes trigger crypto/equity selloffs across leveraged bets.