This is a percentage that is fixed by the Japanese Central Bank. Many other financial organizations (such as commercial banks) set up their own percent for deposits and credits according to CB data.
Interest rate – is one of the most important mechanisms with the help of which the world’s economy regulation is actualized. Particularly, the questions concerning economical growth and inflationary pressure are strictly regulated through this interest rate.
The Market’s reaction to the interest rate is one of the strongest. Actually, the adoption of prime rate by CB and its change is a turning point for all markets and after it they are to decide in what way to move further.
All economical politics depends on interest rate and on its today’s value. The interest rate is measured in percents or basis points. Formal rate change is possible on 0.01% (one basis point), but as a rule, the real alteration occurs up to 0.25 (25 basis points).
As far as Japan is concerned, its interest rates weren’t increasing higher than 0, 5%, and the rate can be reviewed for 0.1% (because of deflation which has been developing during last 15 years).
