Japan's low yen interest rates fuel $435 billion carry trade surge

Japan has become a pivotal player in global finance, primarily due to its ultra-low yen interest rates, which facilitated a $435 billion surge in carry trade since 2022. Despite the Bank of Japan's first rate hike since 2007 in 2024, the dependency on cheap money raises fears of a potential global financial shock.

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Summary by Glance · Original reporting by The Guardian Australia