Bank of Japan Scraps Radical Policy, Makes First Rate Hike in 17 Years

On Tuesday, the Bank of Japan ( BOJ) abruptly ended eight years of negative interest rates and other remnants of its unorthodox policy, a historic shift away from its long-held goal of reflating growth through decades of massive monetary stimulus.
According to analysts, the walk was Japan’s first interest rate increase in 17 years, but it still causes rates to remain below zero as a result of a delicate economic recovery, which causes the central bank to slow down as borrowing costs rise.
The change puts Japan at the top of the list of central banks that have exited negative interest rates, and it also ends a time when policymakers around the world have been attempting to encourage growth through low income and unconventional financial instruments.

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