Posted 3/19/2024, 9:42:30 AM
Bank of Japan Raises Rates, Ends Negative Interest Policy After 17 Years
- Japan ended its negative interest rate policy after 17 years, marking a historic shift away from aggressive monetary easing to fight deflation
- The Bank of Japan raised its key interest rate to 0-0.1% from -0.1%, the first hike since 2007
- The BOJ also abandoned its yield curve control policy introduced in 2016 to keep 10-year bond yields around 0%
- Recent data showed the virtuous cycle between wages and prices has become more solid in Japan
- The BOJ pledged to keep buying bonds at "broadly the same amount," suggesting it won't embark on aggressive tightening like other major central banks