[3:30 p.m.~] Bank of Japan Governor Ueda press conference, lifting negative interest rate policy

At its monetary policy meeting held today, the Bank of Japan decided to end its ``negative interest rate policy'' and raise interest rates.

This is the first interest rate hike by the Bank of Japan in approximately 17 years, and Japan's monetary policy, which has continued to take unusual measures even in the world, will undergo a major shift toward normalization.

We will be reporting in real time the press conference of Bank of Japan Governor Ueda, which will be held from 3:30 p.m.

[Details] Bank of Japan lifts “negative interest rate policy” Changes monetary policy

This link provides detailed information about the Bank of Japan's monetary policy meeting.

Dealing Room: “There was no major confusion immediately after the announcement.”

At around 12:30 p.m. at the foreign exchange dealing room in Tokyo of the Resona Group, a financial giant, when the Bank of Japan announces the lifting of its negative interest rate policy, representatives call customers to explain the policy changes and future plans. He explained the outlook for exchange rates, etc.

Takeshi Ishida, strategist at Resona Holdings, said, ``The market had largely already factored in the policy change based on information from the Bank of Japan over the past few months, and there was no major confusion immediately after the announcement.''

He added, ``This is a day that will mark a huge turning point, as Japan will break free of deflation and become an economy with inflation and interest rates.With this decision, the risk that the yen will continue to depreciate has decreased a little. However, I think the focus will be on whether there will be any interest rate hikes in the future."

Expert: ``There are concerns that the burden of interest payments will increase due to the rise in medium- and long-term interest rates.''

Under the monetary policy of keeping interest rates at a low level, the Bank of Japan has continued to purchase many of the government bonds issued in large quantities through financial institutions. It was also pointed out that it could be interpreted as so-called ``fiscal financing,'' which is, in effect, taking over responsibility.

In this regard, financial analyst Nana Otsuki commented on the impact that the first interest rate hike in 17 years would have on the public finances, saying, ``In the United States, the heavy burden of interest payments on national bonds has become an issue, but in the future, However, if medium- to long-term interest rates rise, there are concerns that the burden of interest payments will increase."

He added, ``If interest payments increase, fiscal freedom will be lost, and there will be risks such as a downgrade of Japan's government bonds.I don't think interest rates have been much of an issue in the past, but from now on, the government will "Financial management that is conscious of the burden of interest payments is required."

In Kabutocho, Tokyo

I heard about the Bank of Japan's decision to end its negative interest rate policy in Kabutocho, Tokyo.

A man in his 60s, a company executive, said, ``As prices have been rising, I felt like it was finally going to be lifted, and I hope that the trend of depreciation of the yen in the foreign exchange market will calm down.In the future, companies will be forced to borrow more, taking into account the burden of interest. I feel like it's time to start thinking about personal home loans."

A man in his 70s said, ``During the bubble economy, interest rates on deposits were high, so from the perspective of my generation, I feel that it's not normal to be able to earn almost any interest now.If interest rates on deposits rise in the future, I'm afraid I won't be able to save more. It makes me feel like doing it," she says.

An office worker in his 50s said, ``I thought the yen would appreciate once the negative interest rate policy was lifted.However, the yen depreciated right after the Bank of Japan's announcement, so I'm wondering what will happen to the exchange rate in the future.'' I thought so,” he says.

On the other hand, a male office worker in his 40s said, ``To be honest, I don't know how my life will be affected if the negative interest rate policy is lifted.I hear that wages will go up at major companies, but I'm a small and medium-sized company. "I'm working and my wages haven't increased. I don't think the economy will recover unless wage increases become more established."

Leading US newspaper: ``The global era of negative interest rates is over''

Overseas media also broke the news that the Bank of Japan had lifted its ``negative interest rate policy'' and decided to raise interest rates for the first time in 17 years.

Among them, the Wall Street Journal, a leading American newspaper, reported, ``This decision marks the end of the global era of negative interest rates that began in the 2010s.''

Regarding the Bank of Japan's policies to date, he said, ``The Bank of Japan has played the role of a laboratory for monetary policy in order to deal with the chronic economic stagnation caused by deflation.''

In addition, the American media outlet Bloomberg reported with the headline, ``Japan ends the world's last negative interest rate policy, making a historic turn''.

``It is clear that Governor Ueda wants to end the unpopular and unnecessary negative interest rate policy, and he has found the right time.The outcome of last week's spring labor wage negotiations paved the way.'' I'm telling you my point of view.

The New York Times, a leading newspaper, said, ``Rising interest rates in Japan will make investing in Japan more profitable for investors, but the US Federal Reserve's policy interest rate is 5% higher, and the European Central Bank's policy rate is 5% higher. "The average interest rate is 4% higher, so even if the US and Europe start lowering interest rates, overseas investment will still be attractive for Japanese investors."

``BoJ officials are wary that raising interest rates too quickly could nip economic growth in the bud, and are suggesting a gradual change in policy.''

China's state-run Xinhua news agency ``Turns around from 10 years of monetary easing''

Regarding the Bank of Japan's decision to end its negative interest rate policy and raise interest rates at its monetary policy meeting, the English version of China's state-run Xinhua News Agency said, "The Bank of Japan has decided to end its negative interest rate policy and raise interest rates. ``In order to end the crisis, we have made a major shift from the 10-year period of monetary easing.''