Japan Says Sayonara to Negative Rates
Japan has struggled with deflation (falling prices) and sluggish economic growth for decades. The BOJ implemented the NIRP in 2016 to encourage borrowing and spending, aiming to get inflation closer to their 2% target.
The BOJ’s move signals a potential shift towards a more normalized monetary policy after years of unconventional measures. It doesn’t necessarily mean interest rates will rise significantly, but it opens the door to that possibility in the future.
https://shorturl.at/blsL9