Japan banks report record profits; consumers cut spending

One year after Japan's historic interest rate hike, major banks are reporting record profits. In contrast, rising prices are leading consumers to spend less, while higher borrowing costs are sparking political debates about government spending. The Bank of Japan's Governor Kazuo Ueda ended the negative interest rate policy and stimulus program last year, citing strong wage growth. This change aimed to support inflation and economic growth. Following the initial rate hike, the Bank of Japan implemented two more increases quickly, the fastest since 1989. Economists predict the bank will maintain current rates this week but may raise them again in July.