If you have large savings deposits in banks, you may be pleased that the Bank of Japan decided to raise interest rates earlier this month. But the weight of expert opinion is not on your side.
Interest rates represent the price for borrowing money.
When they rise, building a new factory or buying a house becomes more expensive. With fewer factories under construction and cars being sold, the economy slows down. When interest rates fall, new factories and cars become more affordable. As a result, the economy speeds up. The basics of monetary policy are no more complicated than this.