DeepSummary
The Bank of Japan has ended its policy of negative interest rates and raised the cost of borrowing for the first time in 17 years. This move by the world's fourth-largest economy could have potential global economic fallout. The key interest rate was raised from -0.1% to a range of 0% to 0.1%, marking a significant shift from the central bank's efforts since 2013 to jumpstart economic growth and inflation.
The decision is seen as a mixed bag for the Japanese economy and consumers. While it signals progress in combating deflation and may lead to higher interest rates on savings accounts, it could also increase borrowing costs for things like variable-rate mortgages. Japan's economic recovery remains fragile, and the central bank is expected to proceed cautiously with any further rate hikes.
Meanwhile, in the streaming industry, African streaming service Showmax is making substantial investments in original African-made content, even as global giant Amazon Prime scales back production in the region. Showmax plans to launch more than 1,300 hours of original programming over the next year, representing a 150% increase in output compared to the previous year.
Key Episodes Takeaways
- The Bank of Japan ended its negative interest rate policy and raised borrowing costs for the first time in 17 years.
- The rate hike signals progress in combating deflation but could have mixed impacts on consumers.
- Japan's economic recovery remains fragile, so further rate increases are expected to be gradual.
- The rate hike by the world's fourth-largest economy could have global economic fallout.
- While Amazon Prime is scaling back production in Africa, Showmax is aggressively investing in original African content.
- Showmax plans to increase its output of original programming by 150% over the next year.
- African content production is experiencing a boom, with increasing technical capabilities to match international standards.
- The African streaming market is becoming a battleground for global and local players vying for market share.
Top Episodes Quotes
- “Japan had a very different problem from most of the economies around the world. It had deflation, where prices don't rise.“ by Suranjana Tiwari
- “Consumers will feel the change through the change that commercial banks make on short term crime rates, and it will be felt in multiple dimensions.“ by Nuboko Koboyashi
- “It is the first time in 17 years and it is very significant in the japanese context. It's almost nothing compared to the rest of the world.“ by Marika oy
- “Just over two years ago, we've come together with Comcast and there's been a significant investment in terms of a longer term strategy, and that strategy really focuses on making it effortless for people across the african continent to access and afford the stories that they love.“ by Mark jury
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Episode Information
Marketplace Morning Report
Marketplace
3/19/24
From the BBC World Service: Japan’s central bank has ended its policy of negative interest rates and raised the cost of borrowing for the first time in 17 years. Japan is the world’s fourth-largest economy, so there’s potential for global economic fallout. We’ll unpack the decision and its impacts. Plus, South African streaming service Showmax is making huge investments in original, African-made content, even while Amazon Prime scales back production investment there.