On Friday, the governor of the Bank of Japan, Masaru Hayami, persuaded the bank’s policy board to raise rates from 0 to 0.25 %. Market analysts do not anticipate any further rise in the rate until next year.
The rise is the latest development in the ongoing disagreements between the Japanese government and the Bank of Japan which became independent two years ago. Some analysts suspect that whilst the change itself may have little impact on the economy, the spectacle of the bank and the government arguing with each other could well act as a deterrent to foreign investment.
Financial Times
