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Bank of Japan rates pivot cause to cheer in China
Xi Jinping’s inner circle in Beijing is probably breathing a little easier as the Bank of Japan steps away from 23 years of quantitative easing (QE). On Tuesday (March 19), BOJ Governor Kazuo Ueda ended the globe’s last negative interest rate regime and scrapped Tokyo’s yield-curve-control experiment. Its new range for policy rates is between 0% and 0.1%, pivoting away from the previous -0.1% target. The BOJ’s step was essentially the smallest it could have taken without upending global markets. The fact Ueda’s team stresses that credit conditions will remain accommodative suggests this is largely a ... (full story)