DXJS - End Of An Era - Bank of Japan Reverses Negative Interest Rate Policy
2024-03-20 12:20:30 ET
Summary
- Kazuo Ueda becomes Governor of the Bank of Japan, continuing the loose monetary policies implemented by his predecessor.
- The BOJ raises short rates from -0.1% to 0.1%, becoming the last central bank to exit a Negative Interest Rate Policy.
- Wage hikes exceeding expectations drive the BOJ's policy change, with other changes including abolishing Yield Curve Control and reducing purchases of certain assets.
Almost one year ago, Kazuo Ueda assumed his current position as the Governor of the Bank of Japan ((BOJ)).
He was replacing Haruhiko Kuroda, who served for ten years as the BOJ Governor, and was instrumental in pushing Japan’s ultra loose monetary policy by aggressively executing Quantitative Easing through increasing Japanese Government Bond ((JGB)) purchases, lowering the BOJ policy rate to negative territory at -0.1%, and implementing the Yield Curve Control Policy ((YCC)) which set a target yield for the 10-year JGB at 0.0%....
End Of An Era - Bank of Japan Reverses Negative Interest Rate Policy