US interest rate hike adds pressure on Japan

Big challenge: In the absence of rising incomes, increasing cost inflation squeezes the disposable income of ordinary people, dampens demand rather than stimulate consumption, and it is not conducive to economic recovery, says Kuroda. — Bloomberg

TOKYO: As the US Federal Reserve (Fed) raised its benchmark interest rate by 50 basis points last Thursday, analysts said the hike further increases the interest rate differential between the Japanese yen and the US dollar, and adds pressure to the Japanese economy.

The yen has weakened markedly this year as US monetary policy has been tightening.