Japan’s central bank raises rates after 17 years

The Bank of Japan (BOJ) on Tuesday raised interest rates for the first time since 2007, pushing them from -0.1% to a range between 0 to 0.1%.

Rates remained near zero over the past 17 years due to a cautious approach driven by the fragile economic recovery.

The move reflects confidence in Japan’s recovery from deflation, with inflation surpassing the 2% target for over a year.

Following the news, Japan’s Nikkei 225 index crossed the 40,000 mark, another feat it achieved for the first time in 17 years.

Despite the rate hike, Japan’s interest rates remain comparatively low compared to those of other major developed economies.