Your current location:HOME >sport >Bank of Japan ends negative interest rates in historic policy overhaul 正文
TIME:2024-04-30 18:41:11 Source: Internet compilationEdit:sport
(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.
'The Tortured Poets Department' gets largest streaming week ever2024-04-30 18:34
Winter Paralympic torch relay held in Beijing's Olympic Forest Park2024-04-30 18:07
Shanghai FTZ's Lingang new area welcomes first foreign bank2024-04-30 17:26
Nation ranks 2nd for new unicorns in '232024-04-30 17:25
NY DA 'so sorry' for cursing at officer who tried to ticket her2024-04-30 17:21
China's foreign trade hits record high in Q12024-04-30 17:21
Sanyuesan: Folk art feasts across China2024-04-30 17:12
EU wind turbine subsidy probe unfair, regressive2024-04-30 16:45
Convicted robber, 45, admits stabbing charity busker, 87, while riding his mobility scooter2024-04-30 16:23
2nd round of Russia2024-04-30 16:19
Classic Peking Opera films set for screening in Beijing2024-04-30 18:21
Xi Sends Congratulatory Letter to Event Marking 70th Anniversary of 'Icebreaking Mission' in China2024-04-30 17:59
Xinhua Headlines: Report on CPC's 'Second Integration' Theory Unlocks Understanding of China2024-04-30 17:57
Xi Sends Congratulatory Letter to Forum on Civilization and Sinology2024-04-30 17:49
Map reveals where headless torso and further human remains have been found by locals in Salford2024-04-30 17:49
People visit exhibitions at Times Art Museum in Beijing2024-04-30 17:32
Farms a hive of activity across China2024-04-30 17:15
Winter Paralympic torch relay held in Beijing's Olympic Forest Park2024-04-30 16:42
Billy Joel serenades ex2024-04-30 16:16
China to promote steady growth in consumption and foreign trade, and stabilize economic fundamentals2024-04-30 16:02