Bank of Japan Raises Interest Rates for First Time in 17 Years, Ending Negative Rate Policy

• The Bank of Japan raised its benchmark interest rate for the first time in 17 years, ending its negative interest rate policy meant to boost the economy.

• The rate was raised from -0.1% to a range of 0% to 0.1% at a policy meeting, confirming expectations of a shift away from ultra-lax monetary policy.

• The bank had set a 2% inflation target as an indicator that Japan had escaped deflationary tendencies.

• Inflation recently reached about 2% and Japanese companies announced relatively robust wage hikes, supporting the policy shift.

• The Bank of Japan's policy differs from the U.S. Federal Reserve and European Central Bank which have been lowering rates to clamp down on inflation.