The Bank of Japan is preparing to increase interest rates for the first time in over two years, aiming for a target rate of 0.75%. This decision could significantly affect global financial markets, as it’s predicted to strengthen the yen and influence Japanese equities and bonds. The anticipated rate hike follows a detailed analysis by economists into corporate earnings, wage negotiations, and recent depreciation of the yen. As the Bank of Japan increases interest rates, financial market volatility is expected, with a stronger yen impacting global capital flows and potentially affecting Japanese equities. While the impact on cryptocurrencies may be minimal, the changes are anticipated to have indirect effects. Economists point out that the decision is based on recent corporate earnings, wage negotiations, yen depreciation, and ongoing government dialogue. This marks the first increase since January 2025, reflecting a cautious approach by the central bank in navigating economic shifts.