BOJ Raises Rates to Highest in 17 Years: What’s Next for Japan?
Understanding the BOJ’s rate hike and its global economic consequences / Picture ⓒ Getty Images Bank of Japan’s Historic Interest Rate Hike: Economic Impact and Global Repercussions The Bank of Japan's Bold Decision: Raising Interest Rates The Bank of Japan (BOJ) has made a historic move by raising its interest rates to the highest level in 17 years. This significant change comes after the country faced rising inflation, which reached the fastest pace in 16 months. Japan’s core consumer prices surged by 3% in December compared to the previous year, pushing the BOJ to adjust its monetary policy to contain inflation. For years, the BOJ has been one of the central banks that maintained ultra-low interest rates, including periods of negative interest rates, to stimulate growth. However, with inflation now consistently above the 2% target, the BOJ’s decision reflects a shift in its approach, marking a new phase in Japan’s economic strategy. Why Did the Bank of Japan Decide to Rai...