Bank of Japan Ends Negative Interest Rates

By Megumi Fujikawa

TOKYO--The Bank of Japan said Tuesday that it will end negative interest rates after an eight-year experiment, symbolizing a broader shift away from unorthodox monetary easing.

The Japanese central bank set a target for short-term interest rates in a range of 0% to 0.1%, carrying out its first rate increase since 2007.

The decision marks the end of a global era of negative interest rates that began in the 2010s. Other central banks that had introduced negative rates in the 2010s, including the European Central Bank and the Swiss National Bank, have already moved back into positive territory amid inflation triggered by the Covid-19 pandemic and the war in Ukraine.

The Bank of Japan, which had maintained a negative policy rate since 2016, said it will continue buying government bonds and maintain accommodative financial conditions.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

March 19, 2024 00:00 ET (04:00 GMT)

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