India, Dec. 22 -- Japan has struggled with low inflation and repeated deflation since the 1990s, this started after the collapse of its asset price bubble which led to weak growth and demand, and resulted in what is widely known as- The Lost Decades of Japan.

Therefore in order to revive the economy, the Bank of Japan had adopted zero interest rate which was later changed to a negative number, which kept the borrowing cost near zero levels for years. This policy was maintained even as the U.S. and Europe had raised their rates post the COVID pandemic. and this is what makes Japan's recent rate hike a significant shift.

In a landmark move that marks a significant pivot in global monetary policy, the Bank of Japan (BoJ) raised its benchma...