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Japan's eight-year period of negative rates is over

Yield curve control policy also ends amid above-target inflation and hefty pay hikes.

19 March 2024

The Bank of Japan voted 7-2 to end the era of negative rates and raised policy rates for the first time since all the way back in 2007, albeit only to 0.1%. ETF and Japanese REIT purchases will end, as does their targeting the yield curve. What would have been quite seismic announcements historically were in the end quite muted, given what had already been leaked to the markets over the last few days. Bond moves were broadly positive, as was the stock market reaction – the real action was focussed on the currency, with the yen weakening to 150 versus the US dollar in a round trip back to levels seen last November.

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Charles Hepworth

Investment Director
My Insights

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