An opinion on Japan interest rates

Japan has steady growth and low unemployment, yet the yen is weaker than many currencies with similar or even lower growth. If other countries can combine growth with a stronger currency, why can’t Japan? In places like Switzerland or Nordic economies, modestly higher rates help support a stronger currency, better savings returns, and more stable borrowing. Japan, with its solid economy, is in a similar position today. The question is not whether Japan can afford to raise rates, but whether it is willing to match its strength with a stronger yen and a better “credit score.” A careful hike by the Bank of Japan could gradually narrow the gap with higher‑value currencies, giving households more buying power and better conditions for government borrowing.