Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Bank of Japan Raises Interest Rates for 1st Time in 17 Years

Tue 19 Mar 2024 | 09:18 AM
Bank of Japan
Bank of Japan
Rana Atef

Bank of Japan raised the interest rates, Tuesday, for the first time in 17 years. 

The latest news sent motivation for the Japanese markets leading Japan’s Nikkei 225 index to end above 40,000.

The new rates raise ended the Bank of Japan's negative interest rate policy. The new interest rates jumped from 0% to 0.1% from -0.1% . The bank also ended its yield curve control policy, marking a historic shift in policy.

Head of Japan economics at BofA Securities Izumi Devalier said: “This would be the first rate hike in 17 years, so it has a lot of symbolic significance."

She added: “But the actual impact on the economy is very small,” highlighting that the BOJ will probably maintain its resolve to keep monetary conditions loose.