Bank of Japan Raises Interest Rates, Ending Era of Ultra-Loose Monetary Policy

The Bank of Japan ended its negative interest rate policy in place since 2016, marking its first interest rate hike in 17 years
The move exits an era of unconventional monetary policies focused on stimulating growth through cheap money
The BOJ abandoned yield curve control that kept long-term rates near zero and halted asset purchases
The central bank will still buy government bonds to prevent spikes in borrowing costs and keep accommodative conditions
Further rate hikes are expected to be gradual as inflation remains below target and the economy is weak