20 Feb 2026 | 3 Mins Read
Japan's tighter monetary policy changes global liquidity dynamics
Flipitmoney
Japan’s short-term rate is seen climbing toward 1% as liquidity tightens, signalling the end of the Bank of Japan’s ultra-loose policy. Economists expect a shift of household savings into deposits and global asset reallocation, with spillovers to bond yields, currencies and equity valuations given Japan’s outsized role in global liquidity.