Bank of Japan raises interest rates for first time since 2007
Make us a preferred source
Make us a preferred source on Google
The news: The Bank of Japan has raised interest rates for the first time since 2007, ending the world's last negative interest rate policy.
The numbers: Japan's central bank lifted its policy rate from -0.1% to between 0% and 0.1%, as policy board members voted 7-2 to scrap the negative interest rate.
BOJ said achieving its 2% price target is now in its sights.
The context: The decision to raise interest rates, which was widely expected, is a signal of confidence by the central bank that the country is leaving behind several years of deflation and economic stagnation.
BOJ said it will gradually reduce commercial paper and corporate bond buying. It also downgraded its assessment of consumer spending and production.
The bank also announced the end of exchange traded funds purchases, through which it currently owns the equivalent of 7% of the Japanese stock market.
As inflation has gradually returned to the country, Japan's Nikkei 225 average hit record highs in February and last week Japan's largest union announced its biggest annual wage hike in 30 years.
The source: Bank of Japan
