Global attention pivoted to Japan on Tuesday (March 19) when the Bank of Japan, led by governor Kazuo Ueda, finally abandoned negative interest rates, raising its deposit rate from -0.10% to 0.00 to 0.10%. This move signals Japan's triumphant emergence from its lost decades and a return to growth, while marking the end of the global negative interest rate era.
I think it's a very good condition for the Japanese economy at the moment. Reasonable inflation is taking place
Eisuke Sakakibara, Japan's former vice-minister of finance for international affairs, known as 'Mr. Yen', addressed the Jefferies Asia Forum on Wednesday morning with a tone of certainty, asserting that the risk of Japan falling back into deflation or facing hyperinflation remains low.
“I think it's a very good condition for the Japanese economy at the moment," Sakakibara declared. "Reasonable inflation is taking place."
Such confidence appears well-founded. Inflation hit 3.2% in 2023, marking 22 consecutive months above its 2% target.
