Japan Center Bank (BoJ) revised its super -soft monetary policy and raised the accounting rate, which since 2016 was actually established at a negative level.
The short -term interest rate is set at 0 – 0.1 percent instead of minus 0.1 percent, as it was before. This is the first increase over the past 17 years.
Thus, the Bank of Japan has become the last bank among leading central banks in the world to abandon the policy of negative interest rates.
In addition, the regulator abandoned the obligations to accept additional steps to soften the monetary policy if necessary.
During the Pandemia of the Coronavirus, the leading central banks of the world, the US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of England (BOE), increased interest rates to restrain inflation to record levels, but Boj continued Supreme Monetary Monetary Policy to stimulate economic growth.
The increase in wages in the country this year, which was the highest over 33 years, increased the expectations that the Japan Bank would take measures to put an end to negative interest rates.
The last increase in interest rates in Japan dates from 2007. Unlike other large industrialized countries, Japan has long been fighting deflation.
The aggressive softening of the Cash-credit policy of the Japanese Bank contributed to the rapid decline in the course of the yen, which negatively affected households in the country.
It is expected that the bank’s exit from negative interest rates will affect not only companies and households, but also a global cash flow.