Hints of what Japan can expect in rate swings

Hopes that banks will benefit big from an end to deflation have sent the Tokyo banking index to its highest in 15 years this year. — Reuters

TOKYO: After decades of deflation, Japan’s economy looks poised to finally turn a corner. For its biggest banks, however, there’s a hitch: a generation of professional front-line staff have little experience with rising interest rates.

Lenders in the world’s third-largest economy are now giving crash courses to younger staff to help clients navigate higher interest rates as many of these employees have no expertise in dealing with the vagaries of a traditional inflation environment.