The Bank of Japan (BOJ) raised the range of its benchmark interest rate from -0.1% to 0%–0.1%. It occurs as salaries soar following an increase in consumer prices.
The bank lowered the interest rate below zero in 2016 in an effort to boost the flagging economy of the nation.
As a result of the increase, no nation has negative interest rates anymore.
When negative interest rates are in effect, depositing money in a bank requires payment. Several nations have employed them to entice citizens to spend their money rather than deposit it in a bank.
In order to regulate interest rates, the BOJ also abandoned a program known as yield curve control, or YCC, which involved purchasing Japanese government bonds.
Since it went into effect in 2016, the YCC policy has come under fire for allegedly distorting markets by preventing the rise in long-term interest rates.
