The Wall Street JournalThe Wall Street Journal

Japan bends to global forces pushing up interest rates

By Megumi Fujikawa

20 Dec 2022 · 4 min read

Japan has been an exception when central banks around the world have been raising interest rates, till now. The WSJ reports on what prompted the Bank of Japan to hike rates and its global implication.

Curated by informed

TOKYO—The Bank of Japan‘s governor, nearing the end of a decade in office, gave markets one more surprise in the form of an interest-rate increase that he said wasn’t really an increase.

It capped an event-filled year for developed-world central bankers in which the Federal Reserve lifted its benchmark rate above 4% and the European Central Bank moved up to 2%. The inflationary forces that pushed the U.S. into rapid clampdown mode proved so powerful that even Japan’s central bank, which long stuck to near-zero rates, felt it had to budge—in part to protect the value of the yen, analysts said.

The news, curated.

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