Central Banks
Banks Boom And Shoppers Scrimp a Year After Japan’s Rate Pivot
The majority of Japanese still see interest rates as too low, according to the central bank’s own survey.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
One year on from Japan’s historic rate hike, profits at its biggest banks are soaring to records, while price rises are forcing consumers to cut back and higher borrowing costs are fueling a political battle over how the government can rein in its outlays.
Bank of Japan Governor Kazuo Ueda scrapped the world’s last negative interest rate and its massive stimulus program a year ago, encouraged by record gains in annual wage deals. Those pay increases suggested consumers were in a position to help drive prices and growth, supporting the inflation trend.