When it failed to happen, the bank decided to push rates to the negative territory

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When it failed to happen, the bank decided to push rates to the negative territory. Even after doing that, the country continued to experience slow inflation growth even with the improving economic growth. This is mostly because most Japanese prefer saving to consumer spending. Therefore, the main reason why traders pay close attention to a country’s inflation rate is because of the central bank. The local currency of a country whose inflation rate is rising tends to strengthen because traders usually anticipate tightening from the central bank.


Similarly, the currency of a country with low – and falling inflation – tends mozambique business email list to remain lower because it is almost impossible for a central bank to tighten under these conditions. How to trade using interest rates If you are a trader who specializes in fundamental analysis, the rate of inflation is very important and you can use it in a number of ways. First, when the jobs numbers show a falling unemployment rate and a general improvement in employment, traders believe that it will lead to a high rate of inflation, which will lead to high interest rates.