What does the Bank of Japan increasing its interest rate from .25% to .5% mean and why is it causing panic in the markets?

Question

I’m no good at economics lol

In: 4812

Answer 1

He wants an ELI5 people, quit it with the complex stuff.

The Bank of Japan has been printing money at full speed for 30 years now. Increasing their interest rate from .25 to .5 means they’re slowing down the (digital) money printers.

Economies like stability, and this means they’re massively changing course.