2024-03-21 07:10:00 ET
Summary
- In a significant policy shift, the Bank of Japan announced an end to its negative interest rate policy on Monday, marking a significant change in monetary policy.
- The BoJ has set a new policy rate range of 0% to 0.1%, moving up from a -0.1% short-term interest rate.
- With the country’s annual wage negotiations settling at record highs, the policy adjustment was well anticipated by investors.
By Toyaj Singh
The Bank of Japan takes a cautious step towards normalization.
In a significant policy shift, the Bank of Japan (BoJ) announced an end to its negative interest rate policy (NIRP) on Monday, marking a significant change in monetary policy. For years, the BoJ has been a bastion of ultraloose policy, characterized by negative rates and extensive asset purchase programs. The latest adjustments herald a cautious step towards normalization, reflecting the central bank's evolving stance on inflation and economic growth prospects....
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From Negative To Neutral In Japan