Glassnode Co-founder: The Bank of Japan's 25 basis point rate hike has already been fully priced in by the market

Jinse Finance reported that Negentropic, co-founder of Glassnode, stated that the Bank of Japan's interest rate hike trade is currently the most crowded trade in the market. Many accounts on social platform X are circulating similar information. The 25 basis point rate hike has long been reflected in current asset prices. The only scenario that could trigger a negative market reaction would be if the Bank of Japan issues a hawkish forward guidance. Given that Japan is cautiously seeking a balance among current account deficits, inflation, and yen appreciation, it has no intention of acting rashly. The Bank of Japan's subsequent policy decisions will be based on economic data and will follow the model of the US Federal Open Market Committee, treating each rate-setting meeting with caution.