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

It means that the central bank of Japan is admitting that global inflation is real, one of the last to do so, which is causing everyone to freak out cause everyone wants to be in denial and believe that constant economic booms are real and will never end.

Basically the global markets have been in a giant bubble for a long time and everyone’s coming to terms with the fact that that would inevitably lead to a giant bust. Which means a lot of people with a ton of money are probably about to lose a good chunk of it.