BoJ to Continue Gradual Rate Hikes Next Year, Likely After June as Wage Growth Hinges on Spring Negotiations

COINOTAG News, December 19, cites EFG Bank economist Sam Jochim, who characterizes the Bank of Japan’s belated rate hike as more of an easing of the accelerator than a hard brake. He sees room for additional rate hikes in 2025, while noting that even after the move the policy rate will remain substantially low by historical standards.

Jochim says the trajectory hinges on the annual spring labor negotiations that shape wage growth; another BOJ rate hike before June is unlikely. He also warns that the central bank remains behind the curve, but the pace of tightening will stay very gradual.

For crypto markets, the gradual policy path in Tokyo suggests liquidity will be modest but predictable, shaping risk sentiment for Bitcoin and other digital assets. Traders will weigh BoJ signals alongside global central banks to assess potential liquidity-driven moves.