# Japan Exits Zero Rates

The Bank of Japan's exit from zero interest rates recurs as a global funding shock, unwinding the yen carry trade in stages and pulling Japanese capital home in a way that pressures richly valued assets abroad.

- Conviction: 40 / 100 (forming)
- Horizon: Medium term (3-9 months)
- Tracking since: 2026-07-23T00:00:00.000Z
- Last updated: 2026-07-23T05:49:48.563Z
- Canonical: https://polylog.news/trends/japan-rate-normalization
- Publisher: Polylog
- Affected regions: Global

## Recent evidence

- [confirms] Japan Settles Into Its First 1 Percent Policy Rate in Three Decades (2026-07-23): The BoJ has settled into its first 1 percent policy rate in three decades, a level that directly threatens the yen carry trade and is changing how Japanese capital is managed. This is the staged funding shock the thesis anticipates, now visibly underway rather than prospective.