The Bank of Japan (BOJ) Increased Interest Rates for the First Time in 17 Years. 🔝🇯🇵
In a significant move, the Bank of Japan (BOJ) has opted for an interest rate hike for the first time in 17 years. Since 2016, BOJ has maintained a policy of negative interest rates, which has now come to an end. The new short-term interest rate target has been set in the range of 0-0.1%.
Simultaneously, the Yield Curve Control (YCC) policy has been abolished, which previously limited long-term interest rates around zero. However, BOJ has committed to continuing and potentially increasing its purchases of government bonds.
These changes mark a notable shift in Japan's economic policies, signaling a departure from the prolonged era of ultra-loose monetary policy. BOJ's decision reflects its confidence in the economic outlook and its commitment to maintaining price stability while supporting sustainable growth.
