The return of inflation and wage growth is giving the Bank of Japan room to raise interest rates and declare the end of a long period of stagnation.

Despite limited developments that would justify a policy shift since December, Japan's central bank nevertheless went ahead to raise interest rates.

Australia's export price index rose 3.6%, while its import price index advanced 0.2% in the fourth quarter of 2024.

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2% target.

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Recent data show Japanese workers are gaining better wages and are generally set to receive solid pay raises in their upcoming annual union negotiations

The Bank of Japan raised its key interest rate to about 0.5 per cent from 0.25 per cent Friday, noting that inflation is holding at a desirable target level. The decision by the central bank came at the end of a two-day policy board meeting in Tokyo.

Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that underlying inflation is still somewhat below 2%. Ueda added that the Japanese central bank would maintain an accommodative policy to support price trends. Recent inflation is driven mostly by cost-push factors.

Stock Market Updates: Benchmark equity indices opened on a positive note on Friday. The BSE Sensex started at 76,889, gaining 129.08 points or 0.17% from its previous close of 76,759.81. Similarly, the NSE Nifty50 opened 47.25 points or 0.20% higher at 23,296.75, compared to its prior close of 23,249.50.

Asian shares wavered on Friday, weighed down by the return of tech-heavy South Korean stocks from holidays, but relatively strong earnings from U.S. tech giants kept risk sentiment intact while tariff threats pushed the dollar and gold prices higher.

The yen was on track for its best monthly start to the year since 2018 on Friday, helped by the view that the Bank of Japan (BOJ) is likely to keep raising rates this year while its global peers elsewhere look to ease policy.

Consumer Stress Is on the Rise Rising auto repossessions and a growing rate of minimum credit card payments offer signs consumers may be getting stretched. Those figures complicate the notion that the consumer is relatively healthy,