Japan's current economic situation? To put it bluntly, it's stuck in a deadlock.

A sluggish economy needs monetary stimulus, but the problem is—the government is already heavily in debt. If they really dare to sharply raise interest rates now, the interest payments alone could crush the government's finances. What choice do they have? Printing money to expand and raising interest rates to tighten are fundamentally opposite paths.

What's worse, Japan's productivity simply can't withstand the costs of higher interest rates. Neither businesses nor households can bear it.

So this so-called "rate hike" is really more of a symbolic gesture. The goal? To stabilize market expectations and cool down inflation. The actual rate increase? Negligible. Hoping to significantly tighten liquidity with this? Impossible.

For those of us watching capital flows, this means: the yen's accommodative tone won't change in the short term, and the global liquidity environment remains relatively friendly.