By Clement Tan | March 19, 2024 | CNBC.com
Japan’s central bank raised interest rates on Tuesday for the first time since 2007, ending the world’s only negative rates regime and other unconventional policy easing measures enacted over the course of the last few decades to combat deflation.
These changes mark a historic shift and represent the sharpest pull back in one of the most aggressive monetary easing exercises in the world. The BOJ’s actions also precede the U.S. Federal Reserve’s interest rate decision later this week.
“The likelihood of inflation stably achieving our target has been heightening … the likelihood reached a certain threshold that resulted in today’s decision,” BOJ Governor Kazuo Ueda said at a press conference after the central bank’s decision, according to a translation provided by Reuters.
Continue reading “Bank of Japan ends the world’s only negative rates regime in a historic move, abandons yield curve control”