Bank of Japan decides to lift negative interest rates, creating a virtuous cycle [Economic Column]
2024-03-23 23:08:00
Finally, the Bank of Japan made a decision. At the monetary policy meeting held on March 19th, it was decided to end the negative interest rate policy. This will be the first interest rate hike in 17 years. The Bank of Japan cited the virtuous cycle between wages and prices as the reason for the policy change. However, this virtuous cycle has not yet been realized, but rather has reached a stage where it is foreseeable that it will become a reality. Will the virtuous cycle become a reality, and will we truly enter an economy where wages and prices rise? Small and medium-sized enterprises are likely to hold the key to this. (Economy Department reporter Takahiro Sato)
