Overview
- The Bank of Japan ends negative interest rates, marking the first increase in borrowing costs since 2007.
- Governor Kazuo Ueda opts for a cautious approach, maintaining zero interest rates for an extended period despite ending negative rates.
- Local economies, particularly traditional inns, face challenges as they adjust to the prospect of higher interest rates.
- The decision reflects a complex balance of economic indicators, including slowing inflation and wage increases.
- The move is seen as a significant step towards normalizing Japan's monetary policy after years of unorthodox measures.