Zhao Yin: Japan's restart of interest rate hikes may exert pressure on global financial conditions.

According to the Wise Finance APP, China Merchants Bank released a research report stating that on December 19, the Bank of Japan raised interest rates by 25 basis points, raising the policy interest rate to 0.75%, in line with market expectations. All nine members supported the rate hike resolution. This is the highest level of policy interest rates since 1995. This is the Bank of Japan's second rate hike after the rate hike in January 2025, and it has been 11 months since the last rate hike. The Bank of Japan's rate hike was as expected, with a muted market reaction. Japanese stocks continued to rise, Japanese 10-year bond yields fluctuated higher, the yen depreciated to around 156 after the rate hike, and other market reactions were muted.