Bank of Japan Raises Interest Rates, Ending Era of Negative Rates

The Bank of Japan's decision to increase interest rates for the first time in 17 years marks a significant shift from its long-standing accommodative monetary policy.

• The Bank of Japan has raised its benchmark interest rate out of negative territory, marking the first hike in 17 years.
• The rate hike could lead to the downfall of 'zombie' firms, unprofitable companies sustained by the previous ultra-loose monetary policy.
• Investors and economists are divided on the future pace of rate hikes, with some expecting a cautious approach compared to the U.S. Federal Reserve.
• The shift away from negative rates is seen as an opportunity for Japan to escape years of deflation and stimulate economic growth.
• The central bank will maintain accommodative financial conditions for the time being, despite the policy shift.

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