Japan exits world's last negative-rate regime in landmark policy shift
9 months ago

Japan exits world's last negative-rate regime in landmark policy shift

Hindustan Times  

Bank of Japan Governor Kazuo Ueda proposed ending negative interest rates as chair of the policy-setting board, public broadcaster NHK reported as per news agency Reuters marking a historic shift. The move could be Japan's first interest rate hike in 17 years but will still keep interest rates stuck around zero amid fragile economic recovery. Japan's central bank was widely expected to scrap its maverick negative interest rate policy and hike borrowing costs. This makes Japan the last central bank to exit negative rates ending an era in which policymakers propped up growth through cheap money and unconventional monetary tools.

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History of this topic

Japan hikes interest rates for only second time in 17 years to shore up yen and tame inflation
4 months, 3 weeks ago

Japan hikes interest rates for only second time in 17 years to shore up yen and tame inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Japan’s central bank has hiked …

Bank of Japan raises its key interest rate, aiming to curb yen’s slide against the dollar
4 months, 3 weeks ago

Bank of Japan raises its key interest rate, aiming to curb yen’s slide against the dollar

Associated Press  

TOKYO — The Bank of Japan raised its key interest rate Wednesday to about 0.25% from a range of zero to about 0.1%, acting to curb the yen’s slide against the U.S. dollar. Japan’s central bank has kept interest rates near or below zero for nearly a decade, seeking to spur inflation in what has been a deflationary economy, hoping …

Bank of Japan to outline bond taper plan, debate rate hike timing
4 months, 3 weeks ago

Bank of Japan to outline bond taper plan, debate rate hike timing

Live Mint  

* BOJ concludes 2-day meeting, decision expected 0300-0430 GMT * Board to debate rate hike timing, July move likely close call * BOJ seen halving bond buying in 1.5-2 years' time in QT plan * Governor Ueda likely to brief media 0630 GMT By Leika Kihara TOKYO, - The Bank of Japan is expected to detail plans to taper its …

Bank of Japan to scale down huge bond-buying programme
6 months, 1 week ago

Bank of Japan to scale down huge bond-buying programme

New Indian Express  

TOKYO: The Bank of Japan on Friday said it would trim its vast hoard of government bonds as it cautiously steps away from its long-running ultra-loose monetary policy. The central bank kept interest rates unchanged after a two-day meeting but announced plans to "reduce its purchase amount of JGBs thereafter to ensure that long-term interest rates would be formed more …

Japan is wrong to try to prop up the yen
7 months, 2 weeks ago

Japan is wrong to try to prop up the yen

Hindustan Times  

It is easy for investors to lose a fortune in the financial markets—and even easier for governments. In 2022 Japan spent more than $60bn of its foreign-exchange reserves defending the yen, its first intervention to strengthen the currency since 1998, after the exchange rate fell to nearly ¥146 to the dollar. Higher rates abroad make profitable a “carry trade”, whereby …

The Bank of Japan ends its negative interest rate policy, opting for its first hike in 17 years
9 months ago

The Bank of Japan ends its negative interest rate policy, opting for its first hike in 17 years

Associated Press  

TOKYO — Japan’s central bank raised its benchmark interest rate Tuesday for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy. The negative interest rate policy, combined with other measures to inject money into the economy and keep borrowing costs low, “have fulfilled their roles,” Bank of Japan Gov. The ultra-lax …

In Japan, interest rate increases herald a new era for financial markets
9 months, 1 week ago

In Japan, interest rate increases herald a new era for financial markets

The Hindu  

Barely weeks after Japanese stocks broke three-decade highs, the country’s financial markets are hurtling toward another phenomenon not seen for the best part of a generation: rising interest rates. “I personally think this is going to be the beginning of a new era,” said Keita Matsumoto, head of financial institutions sales and solutions at Citigroup Global Markets Japan. “Markets still …

Japan’s central bank keeps its negative interest rate unchanged, says it’s watching wage trends
1 year ago

Japan’s central bank keeps its negative interest rate unchanged, says it’s watching wage trends

Associated Press  

BANGKOK — The Bank of Japan kept its longstanding easy credit policy unchanged on Tuesday, saying it will watch price and wage trends before raising its negative benchmark interest rate. The central bank’s policy statement said that housing investment remained weak and government spending was flat. “With extremely high uncertainties surrounding economies and financial markets at home and abroad, the …

Japan’s central bank retains key interest rate while fine-tuning bond purchases for more flexibility
1 year, 4 months ago

Japan’s central bank retains key interest rate while fine-tuning bond purchases for more flexibility

Associated Press  

TOKYO — Japan’s central bank opted Friday to keep its benchmark interest rate at minus 0.1% but fine-tuned its bond purchases to allow greater flexibility in its policies given the “high uncertainties” facing the world’s third-largest economy. The BOJ has resisted raising its longstanding minus 0.1% benchmark rate out of concern that growth in Japan, the world’s third-largest economy, may …

New BOJ head says banks stable, rules out major policy shift
1 year, 8 months ago

New BOJ head says banks stable, rules out major policy shift

Associated Press  

TOKYO — The new governor of Japan’s central bank signaled Monday that he plans no drastic changes in its ultra-low interest rate policy, sticking to earlier messaging on the topic. Japan’s central bank is seeing its first leadership change in a decade, at a time when inflationary pressures around the world remain a risk and central banks are fighting back …

Explained: Will the Bank of Japan break tradition and raise interest rates?
2 years, 1 month ago

Explained: Will the Bank of Japan break tradition and raise interest rates?

Firstpost  

Even as the Federal Reserve and the world’s other central banks raise interest rates to try to curb inflation, the Bank of Japan has stood firm, keeping its key interest rate at minus 0.1 per cent even as the yen sinks to three-decade lows against the dollar Tokyo: Even as the Federal Reserve and the world’s other central banks raise …

EXPLAINER: What’s up with the Bank of Japan’s unique track?
2 years, 1 month ago

EXPLAINER: What’s up with the Bank of Japan’s unique track?

Associated Press  

TOKYO — Even as the Federal Reserve and the world’s other central banks raise interest rates to try to curb inflation, the Bank of Japan has stood firm. Various factors affect currency markets, but the widening gap between interest rates, especially between the U.S. and Japan, means that the value of the dollar has risen sharply as investors seek higher …

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