BoJ Policymakers Warned of Risk of 'Falling Behind the Curve' on Inflation
A Bank of Japan summary from the January meeting, released Monday, said policymakers discussed growing inflationary pressures driven by the weak yen and that some members cautioned about the danger of falling “behind the curve” in responding to excessively high inflation. The language signals increasing concern about imported inflation and leaves open the possibility of a sooner-than-expected reassessment of ultra-loose policy if price dynamics persist.
That prospect matters for crypto because shifts in yen expectations and BoJ guidance can ripple through FX markets and global liquidity, altering carry trades and risk-on flows that often support altcoins and DeFi tokens. Curve DAO token (CRV) and other liquidity-sensitive assets could feel the effects if a stronger yen or tighter global liquidity reprices risk. Traders should watch upcoming BoJ commentary and yen moves for early signals that might impact DeFi liquidity and broader crypto market sentiment.