New Delhi, March 19 (IANS) The Bank of Japan (BoJ) decided to end its negative short-term policy rate, which started in January 2016, and its yield curve control scheme, introduced in September in 2016. The policy rate hike is the first since July 2006, says S&P Global Market Intelligence.
The bank will probably maintain its ultra-loose monetary policy over the near term.
Although the decisions are the first moves toward normalising Japan’s monetary policy, the bank will not likely rush changes to its framework, given that inflation is unlikely to accelerate significantly beyond about 2 per cent under the current economic growth outlook, the analysis said.
Even if the BoJ plans to maintain buffers in case the economy decelerates and inflation weakens, the next policy rate hike is likely to occur in the second half of 2025 in line with improving domestic and external demand, S&P Global Market Intelligence said.
As Japan has just returned to a neutral rate after a prolonged phase of deflation, further policy rate hikes will depend largely on economic and financial markets in Japan and abroad.
In 2016, the bank cut the rate below zero in an attempt to stimulate the country’s stagnating economy. The hike means that there are no longer any countries left with negative interest rates, BBC reported.
–IANS
biz/san/uk
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
