Bank of Japan Sets Policy Rate at 0.75% for Stability

The Bank of Japan announced on December 19, 2025, the decision to set its policy rate at 0.75%, marking a significant monetary policy shift under Governor Kazuo Ueda.

This change signals continued economic support amidst rising inflation, with potential ramifications for global liquidity and risk assessments but no direct mention of cryptocurrencies in the official release.

BOJ Rate Hike Aims for Inflation Control

On December 19, 2025, the Bank of Japan, under Governor Kazuo Ueda’s leadership, decided to set its policy rate at 0.75%, marking a definitive step in its monetary policy. This decision modifies the current guidelines for money market operations, reflecting the Board’s confidence in navigating inflation expectations while ensuring economic stability.

Continuing moderate CPI inflation rises and wage increases prompted the BOJ to adjust rates, aiming to align inflation with the 2% price stability target. Despite the rate increase, real interest rates stay negative, implying that financial conditions continue to be stimulative.

Bitcoin Market Stability Amid BOJ Policy Shift

Did you know? The BOJ’s decision to fix the rate at 0.75% represents a key move in its history, marking its approach to both supporting economic activity and addressing inflation within its 2% target—a delicate balance for policymakers.

Bitcoin, trading at $88,399.72 with a market cap of $1.76 trillion, remains a focal point amid macroeconomic adjustments. Despite these changes, its 24-hour price movement saw a slight decline of 0.02%. Currently, Bitcoin has a trading volume of $56.13 billion, as reported by CoinMarketCap on December 19, 2025.

The Coincu research team suggests that continued monitoring of financial markets is essential. Rising interest rates might influence global asset allocations, affecting risk assets such as cryptocurrencies, but the full effect will depend heavily on broader economic dynamics and future central bank policies. For further details, refer to the Bank of Japan Monetary Policy Statement December 2025.