बैंक ऑफ जापान ने 17 वर्षों में पहली बार बढ़ोतरी का विकल्प चुनते हुए अपनी नकारात्मक ब्याज दर नीति को समाप्त कर दिया

बैंक ऑफ जापान ने 17 वर्षों में पहली बार बढ़ोतरी का विकल्प चुनते हुए अपनी नकारात्मक ब्याज दर नीति को समाप्त कर दिया

The Bank of Japan Ends Its Negative Interest Rate Policy, Opting for Its First Hike in 17 Years

Bank of Japan, ends, negative interest rate policy, first hike, 17 years, monetary policy, historic decision, financial markets, economic strategy, interest rate adjustment.

  • Global News
  • 120
  • 19, Mar, 2024
Jivika Chawla
Jivika Chawla
  • @JivikaChawla

The Bank of Japan Ends Its Negative Interest Rate Policy, Opting for Its First Hike in 17 Years

Japan's central bank made a historic decision on Tuesday by raising its benchmark interest rate for the first time in 17 years, marking the end of a prolonged era of negative rates aimed at stimulating economic growth. The short-term rate was lifted from minus 0.1% to a range of 0 to 0.1% at a policy meeting that was widely anticipated to signal a departure from ultra-loose monetary policy.

This move, the first rate hike since February 2007, reflects the Bank of Japan's assessment that its negative interest rate policy, alongside other measures to inject liquidity into the economy and maintain low borrowing costs, has effectively fulfilled its objectives. The bank acknowledged that its inflation target of 2% served as a yardstick for gauging the country's recovery from deflationary pressures. Despite recent data indicating inflation hovering around this target, the bank had previously hesitated to normalize monetary policy.

The decision to raise rates was also bolstered by reports of Japanese companies announcing significant wage increases during this year's negotiations with trade unions. The bank cited improving wages and profits at companies, drawing on both anecdotal evidence and recent data, as factors contributing to its policy shift.

In summary, the Bank of Japan's move reflects a cautious yet deliberate step towards normalizing monetary policy amid signs of economic recovery and increased confidence in inflation stabilization.

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Jivika Chawla

Jivika Chawla

  • @JivikaChawla