Japan’s central bank raised interest rates on Tuesday for the first time since 2007 and abolished its yield control curve policy, ending the world’s last negative rates regime on early signs of robust wage gains this year.
The BOJ raised its short-term interest rates to around 0 to 0.1% from -0.1%, according to its statement at the end of its two-day March policy meeting. Japan’s negative rates regime had been in place since 2016.
The BOJ will continue to purchase JGBs with “broadly the same amount as before.” ETF and JREITs are scrapped, as reported. The BOJ actually downgraded its assessment of consumer spending and production. So there’s still a sense of caution.
BOJ says achieving its 2% price target is now in its sights.
