Japan's October producer prices rise 7.1%, fueling expectations of rate hikes

on November 12, according to BeInCrypto, Japan's October producer price index rose 7.1%, higher than economists' expectations of 6.5%; import prices denominated in yen increased by 24.8%.

The Bank of Japan has already raised interest rates twice this year, lifting the policy rate to 1.25%. The report notes that if rates are raised again in December, it will be the first time since 1989 that Japan implements three rate hikes within a single calendar year.

The report suggests that rising Japanese interest rates may reduce the attractiveness of yen carry trades; if the yen strengthens abruptly, investors may be forced to sell risk assets such as US stocks and Bitcoin, but a single rate hike does not necessarily trigger a market sell-off.