Editorial

17:09 JST, January 26, 2025

With the additional interest rate hike by the Bank of Japan, the Japanese economy is set to reach a level of interest rates that the nation has not seen for a long time.

It is crucial for the BOJ to proceed with the operation of its future monetary policy by thoroughly scrutinizing the impact of rate hikes on households and companies.

The BOJ has decided to raise its key policy interest rate by 0.25 percentage points to around 0.5%. This is the first rate hike since July last year and takes the key rate to its highest level in about 17 years.

Despite signs of weakness in consumer spending, the Japanese economy has continued to recover moderately. There is also a growing possibility that high-level wage increases will be realized in this year’s shunto spring wage negotiations. No major disruptions have been........

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