Business News: Japan Increases Interest Rate for the First Time, How Will it Affect the Indian Market?

Business News: The Central Bank of Japan recently scrapped its 8-year-old negative interest rate policy. In the last 17 years, the interest rate has been increased for the first time in Japan. However, as Japan is currently recovering from its financial crisis, the interest rate has been kept in the range of 0 to 0.1%. 

Japan’s Interest Rates Affect on Indian Market

The inflation rate in Japan has increased by 2%, and most of the countries are affected by inflation, the increase in the interest rate of Japan has become a matter of concern for other countries. In this case, the central banks of other countries can also delay the rate cut. Japan has invested approximately $33 billion in India in the last 2 years. In this case, there is a possibility that due to the increase in the interest rate, Japanese investors can withdraw their money from the Indian market.