Previous Trading Days Events 19.03.2024

The Bank of Japan BOJ ended eight years of negative interest rates making a historic shift away from its focus on reflating growth with decades of massive monetary stimulus.

This is Japans first interest rate hike in 17 years. The shift makes Japan the last central bank to exit negative rates. Fragile economic recovery forces the central bank to go slow on further rises in borrowing costs, analysts say.

We reverted to a normal monetary policy targeting shortterm interest rates, as with other central banks, BOJ Governor Kazuo Ueda said at a press conference after the decision.

If trend inflation heightens a bit more, that may lead to an increase in shortterm rates, Ueda said, without elaborating on the likely pace and timing of further rate hikes.

The central bank also abandoned yield curve control YCC, a policy in place since 2016 that capped longterm interest rates around zero, and discontinued purchases of risky assets.

Source httpswww.reuters.commarketsasiajapanpoisedendnegativeratesclosingeraradicalpolicy20240318

Australias central bank held interest rates steady signalling greater confidence that inflation is moving back to its target as the economy slows.

The Reserve Bank of Australia RBA kept rates at a 12year high of 4.35 for a third straight meeting and said it was not ruling anything in or out on policy.

The path of interest rates that will best ensure that inflation returns to target in a reasonable…