The Bank of Japan's stance has completely changed. The latest meeting minutes indicate that interest rate hikes will continue after December, which is no longer just a plan on paper— the current 0.75% rate level has reached a thirty-year high, but officials' tone is very firm: this is just the beginning.

For the first time in thirty years, an hawkish approach is being adopted, driven by very real factors. Inflation has exceeded the official 2% target for nearly four consecutive years, yet real interest rates remain negative, silently eroding Japan's purchasing power; the yen has been under long-term pressure, and prices simply won't come down. Some officials have openly stated that more frequent rate hikes are needed; most importantly— the era of negative interest rates is truly over. Capital relying on yen depreciation arbitrage has been rapidly exiting these days, causing sharp fluctuations in the Japanese stock market, bond market, and foreign exchange market.

The central bank's roadmap is already clear: current interest rates are still below the neutral level, and the rate hike cycle is only in the mid-stage.

The chain reaction of this change has already surfaced. Yen volatility has surged significantly, with depreciation risks hanging overhead. Traditional safe-haven assets like gold and silver are becoming more valuable amid market panic. The key issue is that this is not just Japan's problem—global liquidity is also under pressure. The Federal Reserve has long begun tightening policies, and now the Bank of Japan has officially joined this tightening camp.

Once Japan continues to raise interest rates, the massive trillion-level scale of interest rate differential trades could collapse, putting pressure on the dollar, U.S. bonds, and emerging market assets. Some see warning signals flashing; others are already thinking about how to bottom fish from this wave of volatility. Market chaos often breeds opportunities— the key is how to seize them.