Japan just raised rates to 1% — the highest level since 1995.

At first glance, 1% doesn’t sound like much. But for Japan, this is a big macro shift.
For years, cheap yen liquidity helped fuel risk-taking across global markets. Traders borrowed cheap in Japan, moved capital into higher-return assets, and the whole system worked as long as rates stayed low and the yen stayed calm.
Now that setup is getting pressure again.
A more hawkish Bank of Japan can make the yen carry trade less comfortable, and when that trade gets nervous, risk assets usually start paying attention.
Stocks, crypto, high-beta assets — all of them can feel it if global liquidity gets tighter.
This doesn’t mean instant panic.
But it does mean Japan is no longer just background noise.
BOJ is back in the macro story, and traders should not ignore it.