The Central Bank has embarked on a tightening of financial policy due to the emergence of noticeable inflation and rising wages. There is a shortage of labor resources in Japan, which has led to an increase in wages and an acceleration of inflationary processes to above 2%.
In December 2024, the growth rate of the cost of goods in Japan was 3.6%. The Board of Directors of the regulator assumes that the inflation rate for consumer goods will be 2.4% in fiscal year 2025, after which it will decrease to 2.0% in 2026.
Photo: ru.freepik.com
Note that low inflation rates are a typical situation for Japan. In January 2016, the country introduced negative interest rates at the level of -0.1% in order to boost the development of the national economy, but today Japan has stopped using the strategy of negative interest rates.
In 2024, the Central Bank of Japan implemented two increases in the key indicator: in March - to 0.1%, and then in July - to 0.25%. At all other meetings in 2024, the Bank of Japan left the interest rate unchanged.
Earlier we wrote that Japan has expanded sanctions against Russia.
