Japan Increases Interest Rates for the First Time in 17 Years, Escapes Negative Interest Rates for the First Time in 8 Years

The Bank of Japan (BOJ), Japan’s central bank, raised interest rates for the first time in 17 years today (ranked 19th).

As a result, the “-0.1%” short-term interest rate, which was introduced in 2016 and applied to certain deposits, has now increased to 0-0.1%.

BOJ governor Kazuo Ueda announced the decision to raise interest rates at a press conference that day, explaining that the measure was “a return to normal monetary policy targeting short-term interest rates like other central banks.”

Governor Ueda went on to say. “If the current trend in inflation picks up a bit, that could lead to a rise in short-term interest rates,” without specifying the pace or timing of additional rate hikes.

With this decision, the BOJ ended eight years of negative interest rates and other unusual financial policies, Reuters reported.

“Voice of America” ​​news

*This article refers to Reuters.