An end to negative interest rates – THE NEWS

The Central Bank The Bank of Japan (BOJ) made a historic decision to end negative lending rates, completing the most aggressive program on record to support the economy. It was the first rate hike in 17 years. Also borrowing costs in Japan have been in negative territory continuously since 2016. The Bank of Japan’s monetary policy committee voted (by a 7-2 vote) to raise interest rates from minus 0.1% to a range of 0% to 0.1%, deeming the economy no longer at risk of deflation. The BOJ also ended a complex program of monitoring government bond yields and promised to continue buying long-term government debt as long as needed. However, he refrained from signaling further increases in yen borrowing costs, promising that policy would be determined according to current immediate conditions.