The Bank of Japan (BoJ) made a historic decision to end its yield curve control (YCC) policy framework, discontinuing the targeting of the 10-year bond yield.
This marks the central bank's first interest rate hike in 17 years, with the key rate rising from -0.1% to 0%, a significant shift from the negative interest rate era that began in 2016.
The BoJ outlined several key changes in its policy statement, including adjustments to overnight call rates, cessation of ETF and corporate bond purchases and gradual reductions in other asset purchases. Additionally, the BoJ emphasized its commitment to maintaining accommodative financial conditions and closely monitoring economic uncertainties.
