Japan’s economy is experiencing a significant shift, with an increase in prices, wages, and its stock market. After years of slow growth and deflation being a major concern for the central bank, this change is a welcome development for the Bank of Japan (BOJ).
In response to these changes, the BOJ has taken an unprecedented move by raising interest rates for the first time in 17 years. Although slightly positive, this pivot has been cautious, leading to a weak yen as a consequence.
Despite these challenges and uncertainties that lie ahead, Japan’s economy seems to be heading in a positive direction. The return to normalcy is on the horizon, and the BOJ’s careful approach indicates a desire to ensure stability and sustainability in the long run. The current economic landscape in Japan suggests that there may be opportunities for growth and prosperity in the future.