Japan's Bank Raises Rates, Despite Economic Challenges

Japans central bank raises interest rates to combat inflation, ending a decade of negative rates. The Bank of Japan increased benchmark rates by 25 basis points, bringing them to 0.75%, the highest since 1995. This move aims to create a positive cycle of rising wages and prices. However, the rate hike comes at a challenging time for Japans economy, with a contraction in the third quarter and higher borrowing costs. The Bank of Japan may raise rates again in mid-2026, potentially reaching a final rate of 1%.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.