Fri, September 20, 2024 at 05:03

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding the Bank of Japan's latest monetary policy decision.

  • 
• Annie

  • Oh, interesting!

  • What did they decide?😊

  
• 

  Kang-hoon

  • The Bank of Japan has decided to keep interest rates unchanged at 0.25%.

  • This decision has caused the Nikkei index to soar by 2.10%, adding 700 points just today.

  • 
• Annie

  • Wow, that's a significant jump!

  • Why did they decide to keep the rates unchanged?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • The BOJ revised its assessment of consumption, showing confidence in a solid economic recovery.

  • This would allow them to raise interest rates again in the coming months.

• Annie

  • So, they are optimistic about the economy?

  • That's good to hear.

  • But what about inflation?🤔

  
• 

  Kang-hoon

  • Yes, private consumption has been on a moderate increasing trend despite the impact of price rises.

  • In August, core consumer inflation hit 2.8%, rising for the fourth consecutive month.

• Annie

  • I see.

  • So, if inflation continues to rise, they might increase rates in the future?

  
• 

  Kang-hoon

  • Correct.

  • Governor Kazuo Ueda mentioned that if inflation remains on track to hit its 2% target, the BOJ will continue with its rate hikes.

  • Many economists expect this to happen by December.

• Annie

  • That's quite a shift from their previous negative interest rates policy.

  • How has this affected the cryptocurrency market?

  
• 

  Kang-hoon

  • With the BOJ holding interest rates steady, risk-ON assets like cryptocurrencies are enjoying an upside.

  • Bitcoin surged by 3%, moving closer to $64,000.

  • Altcoins, led by Ethereum, have registered gains between 4-10%.

• Annie

  • That's impressive!

  • Is this rally expected to continue?

  
• 

  Kang-hoon

  • Yes, the recovery appears healthy and can continue further.

  • The Bitcoin market has shown strength following the Fed rate cuts earlier this week, which happened for the first time in nearly four years.

• Annie

  • So, no high FOMO driving this rally?

  • That's a good sign.

  • What about Ethereum?

  
• 

  Kang-hoon

  • Indeed.

  • Ethereum also shows signs of recovery.

  • Despite recent movements by Vitalik Buterin, the technical charts suggest a potential rally to $5,000 if the crucial $2,200 support level holds strong.

• Annie

  • That's encouraging!

  • So, overall, would you say this news is positive for the market?

  
• 

  Kang-hoon

  • Absolutely.

  • The BOJ's decision to maintain interest rates and the subsequent market reactions indicate a positive outlook.

  • This stability can foster further growth in both traditional and cryptocurrency markets.

• Annie

  • Thank you, Kang-hoon.

  • This helps a lot with my investment decisions.😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to provide insights.

  • Have a great day!

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.