Current location:International Impact news portal > travel
Bank of Japan ends negative interest rates in historic policy overhaul
International Impact news portal2024-05-21 09:42:46【travel】5People have gathered around
Introduction(Xinhua) 13:38, March 19, 2024TOKYO, March 19 (Xinhua) -- The Bank of Japan (BOJ) on Tuesday decided
TOKYO, March 19 (Xinhua) -- The Bank of Japan (BOJ) on Tuesday decided to end its negative interest rate policy in its first rate hike in 17 years, marking a major shift away from the long-running monetary easing that Japan has seen over the past decade to put an end to deflation.
After a two-day policy meeting, the central bank's policy board decided to guide short-term rate to a range of 0 to 0.1 percent, up a fraction from minus 0.1 to 0 percent, judging that its goal of attaining a stable 2 percent inflation is "in sight."
"It came into sight that the price stability target of 2 percent would be achieved in a sustainable and stable manner," the BOJ said in a post-meeting statement.
On top of returning to positive rates, the BOJ also decided to scrap its yield curve control policy, under which the central bank bought large quantities of Japanese government bonds to keep long-term interest rates at around zero percent to maintain accommodative financial conditions.
Meanwhile, to prevent a rapid increase in interest rates, the BOJ pledged to continue to purchase Japanese government bonds as necessary, underscoring the continuing weakness in the economy, as household consumption has remained sluggish.
The central bank introduced negative rates and yield curve control in 2016, which had been a symbol of the BOJ's more-than-decade-long ultraloose monetary stimulus.
The monetary easing framework, which involved a negative rate and yield curve control program, has "fulfilled" its role, the BOJ said.
The widely expected move on Tuesday comes after major Japanese firms agreed to a 5.28 percent hike in wages with major labor unions this month, marking the biggest pay increase in 33 years, which has heightened the BOJ's confidence that a healthy wage-price cycle is taking root in Japan, and mild inflation will continue.
Despite the major policy overhaul, interest rates are likely to stay very low for the foreseeable future, and BOJ officials do not see the first rise as a signal that more will quickly follow, analysts here said.
Address of this article:http://westernsahara.priasejati.net/news-89e099821.html
Very good!(8339)
Related articles
- The Latest
- Xi stresses development of new productive forces, high
- Hetmyer seals IPL thriller for Rajasthan Royals over Punjab Kings
- CPPCC wraps up annual session, Chinese modernization in focus
- Target to lower prices on basic goods in response to inflation
- Disputed penalty gives Man U draw at Bournemouth as CL qualification slips further away
- Goalie error costs relegation battler Burnley a draw with Brighton in EPL
- Joe Lycett reveals he has a new girlfriend on Channel 4 show as comedian talks about his sexuality
- Hall of Fame outfielder Ken Griffey Jr. to lead Indianapolis 500 field in Corvette pace car
- Rule of law to consolidate high
Popular articles
Recommended
The fightback begins: Boss of London's Queen Mary University tells pro
Senior CPC official stresses protection, inheritance of cultural heritage
Xictionary: Chinese modernization
A Michigan man and his dog are rescued from an inland lake's icy waters
Baby Reindeer's real
China's top political advisory body to hold annual session from March 4 to 10
Xi attends plenary meeting of NPC annual session
Profile: Xi revives culture, spearheads innovation for modern civilization
Links
- Europe's far
- Zhangjiagang Port maintain operation all night to ensure that ships do not overwhelm the port
- Peace still elusive for Ukraine crisis
- Xi Congratulates Thuong on Assuming Vietnam's Presidency
- Highlights of Xi and Putin's Talks in Russia
- Xinhua Headlines
- Ministry: US practice disrupts normal business activities
- Antique beauty of architecture of the Ma Family Courtyard on Huimin street
- Washington moves seen as risking instability
- Quan, Wang add two golds for China at diving World Cup in Berlin