-
Japan’s Landmark Rate Hike Reflects Positive Reflation Dynamics
The Bank of Japan’s (BOJ) decision to raise policy interest rates back into positive territory signals that its efforts to improve inflation dynamics have had some success, says Fitch Ratings. Japan’s credit profile benefits from the modestly stronger inflation outlook overall, despite some pressures on public finances from higher interest rates, but this is already considered in the sovereign’s ‘A’/Stable rating. Preliminary indications that robust increases are being agreed to during the ongoing Shunto wage negotiations should bolster near-term upward pressure on prices and likely supported the BOJ’s ... (full story)