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

(MNI) Tokyo
(MNI) TOKYO

The BOJ has decided to exit negative rates and end yield curve control.

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.

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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.

Keep reading...Show less