MNI BRIEF: BOJ Ends Negative Rate, YCC, Maintains JGB Buying

The Bank of Japan board on Tuesday decided to end its negative interest rate and raised the unsecured overnight call loan rate to a range of between zero percent to 0.1% -- the first rate hike since February 2007.

The BOJ also scrapped the yield curve control policy and deleted the 1.0% ceiling of the long-term interest rate. However, the bank will maintain its Japanese Government Bond buying programme at about the same volume and will make "nimble responses," increasing its purchases, should long-term interest rates rise.

"Given the current outlook for economic activity and prices, the BOJ anticipates that accommodative financial conditions will be maintained for the time being," the board said.

The BOJ will also end its purchases of ETFs (exchange-traded funds) and J-REITs (Japan real estate investment).

MNI reported the BOJ would likely end its easy policy settings last week. (See MNI WATCH: BOJ Nears Negative Rates Exit After Wages Survey).