Bank of Japan ends eight years of negative interest rates

Tokyo March 19 Reuters - The Bank of Japan BOJ ended eight years of negative interest rates and other unorthodox monetary easing steps of the past decade.

The move is a major shift for the BOJ which has kept interest rates ultra-low in an effort to boost inflation and economic growth.

The change in policy comes as the BOJ faces mounting pressure to address rising inflation in Japan. Consumer prices have been rising at their fastest pace in four decades and the BOJ's ultra-low interest rates have been blamed for contributing to the problem.

The BOJ's decision to end negative interest rates is a major victory for Governor Haruhiko Kuroda. Kuroda has long argued that negative interest rates are not effective in stimulating inflation and that they can actually have harmful side effects.

The BOJ's decision is likely to have a significant impact on the Japanese economy. It could lead to higher interest rates on loans and mortgages and could also boost the value of the Japanese yen.

The BOJ's decision is also likely to have a ripple effect on other central banks around the world. Many central banks have kept interest rates low in recent years in order to support growth. However the BOJ's decision to end negative interest rates could lead other central banks to reconsider their own policies.