Exploring Japan's recent shift from negative interest rates to zero range to combat low inflation, stimulate economic activity, and encourage investment. The chapter outlines Japan's struggle with stagnation, deflation, and the significance of the Bank of Japan's decision to raise interest rates after years of economic challenges. It discusses the impact on banks, businesses, consumers, and the strategy to maintain a positive inflation cycle for long-term economic growth.
For the first time in almost two decades, Japan has raised interest rates out of negative territory. The reason? Inflation has finally arrived in the country’s economy.
Today on The Big Take podcast, Bloomberg’s Paul Jackson and host Sarah Holder tackle what the change means for banks, business, and Japan’s economy.
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