Japan Raises Rates for First Time in 15 Years, But Structural Economic Challenges Remain

Japan raised interest rates for the first time since 2007 and ended yield curve control as inflation took hold, following other economies fighting inflation.

However, Japan is not fully "de-Japanifying" - low growth, low rates, and high debt remain structural realities.

Demographics constrain growth and inflation; companies struggle to invest abundant elderly savings productively.

Even with some inflation, real rates remain negative due to still-low nominal rates.

With the highest debt levels globally, Japan cannot withstand significant rate hikes; fiscal belt-tightening would be needed.