Daily News & Analysis

March 19, 2024: Tuesday

Economic Events: Japan Ends Negative Rates, Scraps Yield Curve Control*

Bank of Japan Implements Expected Interest Rate Hike and Policy Adjustments*

BOJ's Interest Rate Hike:*

• During its March meeting, the Bank of Japan (BOJ) raised its key short-term interest rate *from -0.1% to approximately 0%* to 0.1%.

• The decision aligns with market forecasts and concludes eight years of negative interest rates.

First Rate Hike Since 2007*:

• This marks the BOJ's first interest rate hike since 2007, reflecting Japan's sustained inflation exceeding the central bank's 2% target for over a year.

• Major companies in Japan have committed to a substantial wage increase of 5.28%, the largest in over three decades.

Policy Adjustments*:

• The BOJ has abandoned yield curve control for 10-year government bonds and halted purchases of Exchange-Traded Funds (ETFs) and Japan Real Estate Investment Trusts (J-REITS).

• Additionally, the central bank plans to gradually reduce its purchases of corporate bonds, with a complete cessation expected within approximately one year.

Join us for more updates and live signals

https://chat.whatsapp.com/FxE6...

#forextrading#

#forextrading#  #GOLDTODAY#  #mytradingstory#  #USeconomy#  #FlashNews#  #Todayanalysis#