2024-03-21 22:20:49
New Delhi: If we keep money in the bank, we get interest on it. But there is also a country in the world where people had to pay money to deposit money in the bank. We are talking about Japan. Interest rates have been increased for the first time in 17 years in Japan, the world’s fourth largest economy. The Bank of Japan has increased the interest rate from -0.1% to 0%-0.1%. In the year 2016, Japan had brought the interest rate below zero to revive the country’s stagnant economy. Japan was the only country in the world with a negative interest rate. Now the interest rate is not in minus in any country in the world. Negative rates mean that people have to pay money to deposit money in banks. Many countries keep negative interest rates to increase consumption. Due to this, people spend money instead of depositing it in the bank. Bank of Japan has also abandoned the policy of yield control curve. Under this, he used to purchase Japanese government bonds to keep the interest rates under control. This policy was in effect from 2016. But it was being criticized. The allegation was that through this the interest rates are being prevented from increasing which is affecting the market. There was no salary increase in the country for many years. But this month, Japan’s biggest companies have agreed to a 5.28% increase in salaries. This is the biggest increase in more than three decades. The Central Bank of Japan has also indicated that there will be no further increase in interest rates at present.
800 companies went bankrupt in one month…Justin Trudeau’s country, which messed with India, went bankrupt!
Japan saved from recession
Japan’s main stock exchange Nikkei 225 touched an all-time high in February. It broke a 34 year old record. The country’s economy has narrowly escaped from getting stuck in recession. According to the revised data, GDP grew at a faster rate of 0.4 percent in the last three months of 2023. Central banks around the world had cut interest rates during the pandemic. During this period, interest rates had gone negative in many countries. These include Switzerland and Denmark as well as the European Central Bank. To stop inflation, many countries of the world have increased interest rates.