December 14, 2025

The Bank of Japan's interest rate hike decisions have a complex impact on the stock market. Below are the main situations regarding Yen rate hikes in recent years and their effects on the stock market:

1. March 2024: The Bank of Japan ended its negative interest rate policy, but this did not trigger significant stock market volatility, as the market had already anticipated the policy adjustment.

2. July 31, 2024: The Bank of Japan raised the policy interest rate from 0~0.1% to approximately 0.25%. The Nikkei 225 index opened lower that day but rebounded and closed slightly higher.

3. January 24, 2025: The Bank of Japan increased the short-term policy interest rate from 0.25% to 0.5%, reaching the highest level since the 2008 financial crisis. The stock market reacted relatively calmly that day, but subsequent rate hike expectations exerted some pressure on market sentiment.

4. Since November 2025: Members of the Bank of Japan's Monetary Policy Committee have repeatedly signaled hawkish intentions, significantly increasing market expectations for a rate hike in December. As a result, Japanese government bond yields rose sharply, the stock market came under pressure, and the Nikkei 225 index fell nearly 2% on December 1.

Summary: The impact of the Bank of Japan's rate hike decisions on the stock market depends on policy intensity, market expectations, and the global economic environment. In the short term, rate hikes may cause market fluctuations, but the long-term effects require a comprehensive assessment of economic fundamentals and corporate earnings.