After the Federal Reserve's decision to cut interest rates by 25 basis points this morning, the Bank of Japan's interest rate decision was released around 11 AM today, maintaining the policy interest rate at 0.25%, marking the third consecutive pause in rate hikes. The exchange rate of the yen against the dollar subsequently depreciated below the 155 mark. Notably, the focus of the debate regarding the Bank of Japan's interest rate hikes is shifting from when to raise rates to discussions about how high rates will go. (Background: The Bank of Japan does not raise rates, maintains the 0.25% interest rate, Bitcoin returns to $100,000) (Additional context: The yen has depreciated for six consecutive days! Analysts warn that the Bank of Japan may be forced to raise rates tomorrow, with the 155 mark being a critical point) The Federal Reserve's decision to cut rates by 25 basis points this morning implies a slowdown in rate cuts next year, with only 50 basis points expected. Following this, the Bank of Japan's interest rate decision was released around 11 AM today, with a result of 8 votes in favor and 1 against, maintaining the policy interest rate at 0.25%, marking the third consecutive pause in rate hikes. According to Kyodo News, the reason the Bank of Japan decided not to raise rates is to observe the unclear economic impact of the policies of the incoming U.S. President Trump, as well as wage trends in the spring labor negotiations in 2025. Bank of Japan Governor Kazuo Ueda will hold a press conference in the afternoon to explain the reasons for the decision. The Bank of Japan's stance is that if the economy and prices meet expectations, it will consider raising rates. However, given the recent pause in the yen's historic depreciation momentum in the foreign exchange market and the lower risk of a sharp rise in prices, many opinions within the central bank believe it is not urgent to raise rates at this time. After the Bank of Japan's decision was announced, the yen's exchange rate against the dollar plummeted, dropping below the 155 mark, currently reported at 155.23. This critical level of 155 is closely monitored by analysts who previously warned that falling below this level could trigger verbal intervention from Japanese authorities and apply more pressure on the Bank of Japan to raise rates. Yen observers are focusing on whether Governor Ueda will provide any hints regarding the next rate hike during the afternoon press conference. If the yen continues to depreciate, the central bank may face greater pressure to raise rates. The debate on when to raise rates in Japan is now shifting to how high rates can go. It is noteworthy that according to Reuters, as speculation about the timing of the next interest rate hike by the Bank of Japan heats up, an internal debate is brewing regarding how much rates can be raised, which may be discussed in this week's policy meeting. Governor Ueda may provide detailed insights into the bank's view on the future path of interest rate hikes this afternoon. Estimates from Bank of Japan policymakers indicate that the Bank believes there is room to raise short-term rates to around 1% without affecting economic growth. However, some central bank officials point out that recent weak consumption suggests that rates may be lower, and the outcome of this debate is crucial for determining the pace of future rate hikes, as the Bank plans to raise its policy interest rate close to neutral levels by early 2027. Most analysts expect the Bank of Japan to raise short-term rates from the current 0.25% in March of next year, which would be an important step towards a neutral rate. Former Bank of Japan board member Takahide Kiuchi believes that once rates are raised to 0.5%, the bank will slow the pace of rate hikes, as further increases would bring borrowing costs closer to neutral levels. Kiuchi stated that the Bank of Japan might consider Japan's neutral rate to be slightly below 1%, expecting to raise rates to 0.5% in January next year and to 0.75% around September next year. After rates rise to 0.5%, the Bank of Japan will adopt a more empirical approach, closely evaluating the impact of each rate hike on the economy. The potential risks of yen carry trades remain a significant ticking time bomb. Currently, market attention on the potential risks of yen carry trades is increasing, seen as a huge ticking time bomb that could explode. With the Federal Reserve slowing its rate cuts, the Bank of Japan is cautious about raising rates, creating a significant divergence in global interest rate policies. Looking ahead to 2025-2026, overall economic uncertainty is further exacerbating the potential closing pressure of yen carry trades, which may also impact the trends in the cryptocurrency market. The cryptocurrency market, as a high-risk asset, is highly sensitive to macroeconomic changes. Once there is a drastic change in capital flows, it may lead to increased market volatility, posing challenges for investors. Therefore, closely monitoring the subsequent developments of yen carry trades and the dynamics of monetary policies in various countries will be key for future market observations. Related Reports: What caused Bitcoin to surge? The Bank of Japan is rumored not to raise rates in December! The yen plunges to a three-week low. The Bank of Japan is rumored to be 'leaning towards not raising rates' next week; can Bitcoin continue to rise? Japan's economy is too strong! Experts estimate the probability of a rate hike in December exceeds 50%. 'If the U.S. cuts rates and Japan raises rates,' be cautious of a yen carry trade liquidation wave. "The Bank of Japan maintains its interest rate freeze and officials focus on the future 'how high to raise rates'; when will the yen carry trade liquidation crisis explode?" This article was first published on BlockTempo (the most influential blockchain news media).