Japan increases interest rate chasing down rising inflation

The Bank of Japan recently raised its interest rate by 25 basis points to 0.5%, marking the highest level since 2008

This decision was influenced by sustained inflation and rising wages, signalling a cycle in the economy.

The move was expected by many economists and resulted in the Japanese yen strengthening against the dollar.

The Bank of Japan has indicated that more interest rate hikes may be on the horizon.

One year Nikkei chart