Three decades of economic slumber — and now, the Land of the Rising Sun is making a 180° turn. Inflation has surpassed 3.6%, the key interest rate is at its highest since 2008, and the Bank of Japan has finally switched to “normalization” mode.
Why does this matter? Because Japan was a living textbook on the liquidity trap and chronic deflation. What we are witnessing now is not just a macroeconomic shift — it’s a fundamental challenge to the old model.
The wealth effect, a reboot in corporate culture, a confident rise in the Nikkei, and a paradigm shift in central bank policy — everything suggests that the country is emerging from years of stagnation with new growth drivers.
But it’s not all smooth sailing.
Government debt is at record highs, and inflation expectations are only just beginning to recover. Whether the Bank of Japan can maintain the balance between growth and debt is the key question for the years ahead.
Read the latest analytical report by Teniz Capital Investment Banking below.
Download the report here