[Bad news: The Bank of Japan raised interest rates for the first time in 17 years, ending the eight-year era of negative interest rates. After the bad news materialized, ★Bitcoin and Ethereum entered an adjustment cycle]
On March 19, the official website of the Bank of Japan released the interest rate resolution of the March interest rate meeting. In terms of market operation guidance, the Bank of Japan will support the unsecured overnight lending rate to remain within the range of 0% to 0.1%, in line with market expectations. In order to achieve this interest rate guidance, the Bank of Japan increased the interest rate on excess reserve deposits of commercial banks with the Bank of Japan from the previous -0.1% to 0.1% (excluding statutory reserves). The new interest rate will take effect on March 21. This is the first time the Bank of Japan has raised interest rates since 2007, and the eight-year era of negative interest rates has officially come to an end.
At the same time, the Bank of Japan will continue to purchase Japanese government bonds at roughly the same scale as before. If long-term interest rates rise rapidly, the Bank of Japan will respond flexibly, such as increasing the number of purchases of Japanese government bonds and conducting fixed-rate purchases of Japanese government bonds.
On January 29, 2016, the Bank of Japan announced new easing measures and decided to reduce the interest rate on excess reserve deposits of commercial banks with the Bank of Japan from the previous 0.1% to -0.1% starting from February 16, 2016. Japan Since then, we have entered the era of “negative interest rates”.