Despite the Bank of Japan's decision to raise interest rates, the Yen continues to depreciate. Analysts attribute this surprising trend to several economic factors, both domestic and international. The effect of these decisions on Japan's economy and its consumers will become clearer over the coming months, as observers watch to see how the situation unfolds.

Interest rates and Yen rate are crucial indicators of Japan's economic health. A decision by Japan's central bank can influence everything from household debt to business investments. Japanese citizens and businesses are particularly sensitive to these fluctuations, as changes in the economy can directly impact their financial stability.

In comparison, the Federal Reserve in the U.S and the European Central Bank in the EU often use interest rate hikes to combat inflation - an improving economy can tolerate higher rates. However, the responses in currency values differ due to the distinct makeup of each region's economy.