Japan Raises Interest Rates to Highest Level Since 2008
Published On Jan 23, 2025, 10:26 PM
The Bank of Japan has raised interest rates for the third time in under a year, bringing the rate to 0.5%, the highest since 2008. This shift comes as the country experiences a return to inflation and wage growth, reminiscent of economic conditions prior to the 1990s recession. Japan's central bank is moving away from the ultra-low interest rates that were in place to stimulate economic growth in a deflationary environment, marking a significant shift toward a more conventional economic approach.
Stock Forecasts
EWJ
Positive
The increase in interest rates by the Bank of Japan is likely to support the yen and could lead to stronger demand for Japanese assets. As Japan pivots away from its historically deflationary stance, investor sentiment may improve towards Japan's economy, boosting Japanese equities.
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