BOJ Interest Rate Meeting: Governor Kazuo Ueda from Bank of Japan ends negatives interest rates. The Bank of Japan for the first time in 17 years is set to guide interest rate higher, as its goal of sustainable 2% inflation is on the radar. It is planning to end its yield curve control, purchases of risk assets and break off on negative interest rates today, as Nikkei reported.
The Bank has made significant changes in the monetary policy of Japan in last 10 years. A two day policy board meeting was held and the bank is planning to ease much of its monetary program. Bank Of Japan Governor, Kazuo Ueda along with the other policy members have taken the decision.
One of the most vital reasons for ending negative interest rates is said to be the wage arbitration which is currently taking place between employers and unions, said BOJ Governor Ueda, Nikkei reported.
Real estate investment trusts and purchases of (ETFs) Japanese stock exchange traded funds will conclude too.
Japan has been facing deflation for almost a decade and also there was a spike in consumer prices too. The Bank has made this move by keeping these issue in consideration.
The Bank of Japan has implemented the negative rate on several commercial bank money which has been deposited at the bank since 2016 in order to stimulate lending.