Bank of Japan ends negative interest rates, raises rate for first time in 17 years

The Bank of Japan (BOJ) made a significant move by raising its main interest rate from -0.1% to 0%, effectively ending its negative interest rate policy and the purchase of government bonds to target ten-year yields. This shift makes Japan no longer an outlier with a positive interest rate policy. The BOJ also discontinued the policy implemented in 2016 that imposed a 0.1% charge on some excess reserves, instead choosing to guide them within a range of 0-0.1%, and paying 0.1% interest on deposits at the central bank. This marks the first rate hike in Japan in the past 17 years, according to analysts, symbolizing a significant change in monetary policy.