BOJ ENDS NEGATIVE RATE POLICY, YIELD CURVE CONTROL
The Bank of Japan marks a landmark shift away from its massive monetary stimulus. The central bank has decided to end its negative interest rate policy and raise borrowing rates for the first time in 17 years. It will also abandon its yield-curve control framework, which holds down long- and short-term interest rates.
The policymakers announced the move after winding up their two-day meeting on Tuesday. They have decided to end the bank's negative rate policy. The central bank assessed the virtuous cycle between wages and prices and judged that its price stability target of 2 percent inflation would be sustainably achieved.
Policymakers say they will encourage the overnight call rate to remain at around zero to 0.1 percent. The central bank's interest rate hike is the first since February 2007.
The BOJ also decided not to continue purchasing exchange-traded funds and Japan real estate investment trusts.
BOJ ENDS NEGATIVE RATE POLICY, YIELD CURVE CONTROL
The Bank of Japan marks a landmark shift away from its massive monetary stimulus. The central bank has decided to end its negative interest rate policy and raise borrowing rates for the first time in 17 years. It will also abandon its yield-curve control framework, which holds down long- and short-term interest rates.
The policymakers announced the move after winding up their two-day meeting on Tuesday. They have decided to end the bank's negative rate policy. The central bank assessed the virtuous cycle between wages and prices and judged that its price stability target of 2 percent inflation would be sustainably achieved.
Policymakers say they will encourage the overnight call rate to remain at around zero to 0.1 percent. The central bank's interest rate hike is the first since February 2007.
The BOJ also decided not to continue purchasing exchange-traded funds and Japan real estate investment trusts.