Global Market | Japan’s Tightening Cycle Could Redraw the Map of Global Market Liquidity

The Bank of Japan has ended its ultra‑easy stance, pushing policy rates to the highest level in decades and pricing in another hike. Higher domestic yields are likely to trigger repatriation of Japanese savings, cutting the flow of low‑cost funding that has supported global carry trades. Household assets may shift toward bank deposits, swelling reserves and pressuring short‑term money‑market rates. Global investors fear tighter funding could lift yields, strengthen the yen and dampen equity valuations worldwide.

Source: The Economic Times (India) – RSS hub