The Bank of Japan has recently announced the end of its negative interest rate, signaling the conclusion of an aggressive monetary stimulus program. This decision marks a shift in policy as the bank aims to move its interest rate range between 0% and 0.1%, away from the previous -0.1% short-term rate. The vote to discontinue this program was made unanimously by the bank’s board at the conclusion of its two-day meeting on Tuesday.
As part of this change, the BOJ has also decided to end its complex yield curve control program, but it remains committed to maintaining accommodative financial conditions. Despite these changes, the bank will continue to buy long-term government bonds as needed to support economic growth.
In addition, the BOJ has announced that it will no longer purchase exchange-traded funds as part of its new approach to monetary policy. This shift in strategy reflects the bank’s effort to adapt to changing economic conditions while continuing to support economic growth through various measures.
Overall, these changes signal a shift in monetary policy for the Bank of Japan as it seeks to maintain a stable economy while adapting to changing market conditions.
