Japan has increased interest rates to the highest level since 2008

In several respects, the Japan economy seems to be going back in time.

Inflation and growth of wages are mainly back where they were in the early 1990s, just before the spiral of price deflation and economic stagnation which has become “lost decades”.

This prompted the Bank of Japan on Friday to increase interest rates by a quarter, to 0.5%, another step in its pivot of managers of long -term rates for a long time to try to go up the economy to life.

Friday increase, which brought the rates to their highest level since 2008,, was the third in a little less than a year, a rhythm of tightening of policies not observed in Japan since 1989. After having increased the rates in March and July of last year, the Bank of Japan was held during the Recent political meetings when she was waiting to see if the inauguration of President Trump would allace the markets.

While the other large central banks move to reduce the high interest rates they had used to brake inflation, Japan is, as usual, to trummate the trend. After encouraging a period of price increase, the Bank of Japan increases the rates above zero.

Economists say that with the return of inflation and positive interest rates, Japan is starting to look like a more conventional economy.