In some sense this sort of article confuses me. This is a different economy, with its own legislative framework and where the people speak a language that is not English. But the frame is that they are basically a clone of the US and a policy change in Japan is equivalent to the policy change that sounds the most similar in the US. And even in English speaking countries, the frame that interest rates are like a little knob that the central planning committee adjusts is suspect. How the rate is influenced is quite important too.
There is so much context required to interpret this, it really needs to be part of a "Japan Economy" wiki rather than a stand alone article.
But best of luck to Japan. Nobody ever asks for my opinion, but IMO it'd be sensible to let the markets set the interest rate. The evidence that markets are weak at setting interest rates is itself quite flimsy.
There is so much context required to interpret this, it really needs to be part of a "Japan Economy" wiki rather than a stand alone article.
But best of luck to Japan. Nobody ever asks for my opinion, but IMO it'd be sensible to let the markets set the interest rate. The evidence that markets are weak at setting interest rates is itself quite flimsy.