Economy Politics Country 2025-12-05T07:11:28+00:00

Bank of Japan Faces Tough Choice on Monetary Policy

The Bank of Japan faces a dilemma: raise rates risking economic slowdown, or keep them to support growth, which could fuel inflation.


Bank of Japan Faces Tough Choice on Monetary Policy

The Bank of Japan faces a difficult choice: either stick to its policy of raising interest rates, risking higher yields and further slowdown in an economy already in recession, or keep them stable, or even lower them, to support growth, which could accelerate inflation more. The central bank must weigh the risks of supporting the economy and controlling inflation.