Interest rates linked to inflation

[greenlex]

The Bank of England use increased rates in theory to slow demand for things and decrease inflation I get that.
Can anyone explain how the Japanese are faring much better without such an increase. Inflation has only recently nudged briefly over 4% for the first time in 25 years with an interest rate that reached the heady heights of 0.5 % around the global banking crisis in 2008. The interest rate has actually been in negative numbers since 2016.
Are we doing it wrong here? I’m genuinely curious.

[TrumpIsAPeado]

The Bank of England use increased rates in theory to slow demand for things and decrease inflation I get that.
Can anyone explain how the Japanese are faring much better without such an increase. Inflation has only recently nudged briefly over 4% for the first time in 25 years with an interest rate that reached the heady heights of 0.5 % around the global banking crisis in 2008. The interest rate has actually been in negative numbers since 2016.
Are we doing it wrong here? I’m genuinely curious.

Japan has the highest debt to GDP ratio in the world. They're not in a position to increase interest rates on borrowing.

[greenlex]

Japan has the highest debt to GDP ratio in the world. They're not in a position to increase interest rates on borrowing.
So why is their inflation not running riot? Do they have another means to keep it under control?

[Stairway 2 7]

So why is their inflation not running riot? Do they have another means to keep it under control?

Japan's economy is a bit of a basket case. Low wage rises, a really old aging and massively shrinking population is what most think is causing low inflation. We can't compare ourselves to it in the same way we can't compare to Argentinas 100+% inflation

Better looking at Europe, we are doing worse than most in western Europe. Raising inflation done its job inflation is falling although I'm not sure they should have risen the rate this week

[greenlex]

Japan's economy is a bit of a basket case. Low wage rises, a really old aging and massively shrinking population is what most think is causing low inflation. We can't compare ourselves to it in the same way we can't compare to Argentinas 100+% inflation

Better looking at Europe, we are doing worse than most in western Europe. Raising inflation done its job inflation is falling although I'm not sure they should have risen the rate this week
I think it’s relevant with them being one of the G7 countries.
Scotlands population is aging and shrinking and wage rises aren’t exactly huge.

[Stairway 2 7]

I think it’s relevant with them being one of the G7 countries.
Scotlands population is aging and shrinking and wage rises aren’t exactly huge.

Not as much and the difference matters. Then two other huge factors that make a large proportion of our inflation is energy and food. In Japan both energy and wheat are bought by the government, the price is set and they have long term supply prices set. What would European inflation be if there was hardly any rise on energy and food

[greenlex]

Not as much and the difference matters. Then two other huge factors that make a large proportion of our inflation is energy and food. In Japan both energy and wheat are bought by the government, the price is set and they have long term supply prices set. What would European inflation be if there was hardly any rise on energy and food
Are they not buying in the same markets as the rest? Take energy for example. Our huge price rises were because the companies bought a year in advance and paid extortionate prices for it. The reduced energy prices that are filtering through now are because the wholesale price has fallen since and the companies are now just about passing that on. Japan seem to have had things more or less under control for the past 25 years.
Are both energy and Wheat nationalised commodities in Japan?

[Stairway 2 7]

Are they not buying in the same markets as the rest? Take energy for example. Our huge price rises were because the companies bought a year in advance and paid extortionate prices for it. The reduced energy prices that are filtering through now are because the wholesale price has fallen since and the companies are now just about passing that on. Japan seem to have had things more or less under control for the past 25 years.
Are both energy and Wheat nationalised commodities in Japan?

The buying of both is nationalised and the price rise is set. Spain has 2% inflation in part thanks to them limiting the price rises for energy. France to hence their inflation being much smaller than UK and Germany where we got hammered

[Smartie]

Is it not just down to quantities of goods imported / exported, the effects of supply / demand, and exposure to the three main shocks in recent years - covid (and the the actions governments took to mitigate the various types of damage it brought including financial) the war in Ukraine (knock on effects on energy, fertiliser etc) and Brexit (obviously clobbering us, having no effect on Japan)?

[scottish_sleepy]

Interestingly enough have a wee look at the massive increases in bank profits since the base rate started climbing and the subsequent rises in tax revenues to the government and we might get a clue why the rate keeps climbing. We were told the increases would stop when inflation stopped rising, which changed to it would stop when inflation started to fall and now the most recent one, once they can be sure the decreases keep happening. They keep changing the goalposts whenever it suits them. Still, massive bank profits can't be bad for all those tory mp's who are shareholders or hold positions within the banks.

[Speedy]

Interestingly enough have a wee look at the massive increases in bank profits since the base rate started climbing and the subsequent rises in tax revenues to the government and we might get a clue why the rate keeps climbing. We were told the increases would stop when inflation stopped rising, which changed to it would stop when inflation started to fall and now the most recent one, once they can be sure the decreases keep happening. They keep changing the goalposts whenever it suits them. Still, massive bank profits can't be bad for all those tory mp's who are shareholders or hold positions within the banks.

No offence but I think this post is misinformed.

The interest rate was always set to peak around Feb.

Inflation rate will reduce dramatically from Oct.

[pollution]

Re Japan's financial situation: in the late 1980's Japan's growth came to a sharp stop and since then the Japanese savers have been extremely reluctant to spend money, one of the reasons for low inflation.

It has been a national concern for 30 years and spending is only slowly returning.

The Nikkei index reached its height in 1989 and only regained that level recently.