Interest rates in Japan are rising
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The Bank of Japan makes an important decision. It raises the base interest rate to 1 percent. This is the highest value since 1995. The bank wants to fight high prices. This is called inflation. Energy is very expensive because of the war in Iran. Japan buys all oil from the Middle East. Costs for firms and people rise.
The economy in Japan grows well. Firms make good money. People earn more money. The government helps with costs for power and gas. Still the bank fears rising prices. It wants inflation at 2 percent. High interest rates make borrowing money expensive. This keeps prices stable.
The boss of the bank is not there. Kazuo Ueda is in the hospital. He has a sick liver. His worker Shinichi Uchida tells the news. The stock market in Japan is happy. The important stock index Nikkei rises. It reaches a new high value. Other countries look at Japan. But interest rates in Japan are still low.
The economy in Japan grows well. Firms make good money. People earn more money. The government helps with costs for power and gas. Still the bank fears rising prices. It wants inflation at 2 percent. High interest rates make borrowing money expensive. This keeps prices stable.
The boss of the bank is not there. Kazuo Ueda is in the hospital. He has a sick liver. His worker Shinichi Uchida tells the news. The stock market in Japan is happy. The important stock index Nikkei rises. It reaches a new high value. Other countries look at Japan. But interest rates in Japan are still low.
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Definitions
- Base interest rate
- The base interest rate is a price for money. A central bank decides this price. It shows how expensive loans are.
- Inflation
- Inflation means things get expensive. Money loses value. You can buy less for your money.
- Stock index
- A stock index shows how stock prices change. It is like a measure for the economy.
People
- Kazuo Ueda
- Kazuo Ueda is the boss of the Bank of Japan.
- Shinichi Uchida
- Shinichi Uchida is the worker of the boss.
Locations
- Japan
- Japan is a country with many islands.
- Iran
- Iran is a country in the Middle East.
Sources
The Guardian
Bank of Japan raises interest rates to 31-year high amid Iran war inflation pressures
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