Bank of Japan Ends Three Decades of Ultra-Low Rates

The Bank of Japan raised its policy rate to 1% for the first time since 1995, ending three decades of ultra-low interest rates and marking a historic shift in monetary policy. The central bank will simultaneously cease its monthly bond purchases beginning next year, signaling a fundamental recalibration of its economic strategy. This decision reflects growing confidence in Japan's economic recovery and represents the most significant tightening of monetary conditions in the nation in over two decades.