Key Points
The Bank of Japan ended eight years of negative interest rates and other remnants of its unorthodox policy on Tuesday, making a historic shift away from a focus of reflating growth with decades of massive monetary stimulus...
While the move will be Japan's first interest rate hike in 17 years, it still keeps rates stuck around zero as a fragile economic recovery forces the central bank to go slow in any further rise in borrowing costs, analysts say...
The shift makes Japan the last central bank to exit negative rates and ends an era in which policymakers around the world sought to prop up growth through cheap money and unconventional monetary tools...
"This would be the first rate hike in 17 years, so it has a lot of symbolic significance," Izumi Devalier, head of Japan economics at BofA Securities, said prior to the BOJ's policy decision...
As the yen's sharp falls pushed up the cost of imports and heightened public criticism over the demerits of Japan's ultra-low interest rates, however, the BOJ last year tweaked YCC to relax its grip on long-term rates..
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