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

From my understanding.

Japan has been going through a multi decade period of deflation.

Usually, deflation = lower rates

Usually, inflation = higher rates

Inflation in Japan is rare so its a sign that global inflation might not have peaked.