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Japan raises interest rates for the first time in 17 years
In a bid to revive stagnant post-financial crisis economies and spur inflation, central bankers globally ventured into uncharted territory in the 2010s by pushing interest rates into negative territory.
However, this experimental phase has now drawn to a close. Japan, as of Tuesday, became the final nation to abandon its negative interest rate policy, once deemed unthinkable, as a means to tackle an economy mired in slow growth and deflationary pressures.
The landscape for central bankers in the 2020s presents a stark contrast, with inflation emerging as the primary concern rather than deflation.
Consequently, there appears to be little justification to persist with such unconventional policies, Axios reported.
READ MORE: https://www.axios.com/2024/03/19/japan-bank-negative-interest-rate-hike
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