Japan’s economic comeback faces hardest BOJ test in a generation
Amid pressure from the U.S., chronic yen weakness and inflation, the Bank of Japan looks set to raise rates for the third time in less than 10 months.
Japan's resurgence from economic stagnation is about to be tested by a series of interest rate hikes more rapid than in any generation, according to the latest wire material. The Bank of Japan is considering raising benchmark borrowing costs for the third time in under ten months, a pace not seen since the early 1990s when the country was still a formidable economic rival to the United States.
U.S. Treasury Secretary Scott Bessent has been putting pressure on the Bank of Japan, citing chronic yen weakness and rising prices. This move would mirror the four consecutive rate increases in 1994-1995 that triggered a stock market crash and a downturn into stagnation. However, the current economic picture is more subdued, with growth on a slower trajectory and the main risks appearing in currency and bond markets.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
