The pace of interest rate cuts has been the focus for much of the world, but in Japan, things are going in the opposite direction. The BOJ just hiked its key policy rate to its highest level in 17 years,

The return of inflation and wage growth is giving the Bank of Japan room to raise interest rates and declare the end of a long period of stagnation.

Japan’s central bank has hiked interest rates as expected to a 17-year high as it continues on a path to normalise its monetary policy. On Friday (Jan 24), the Bank of Japan (BOJ) raised short-term rates by 25 basis points to 0.5 per cent, its highest level since the 2008 global financial crisis.