Market history · Central banks ·
Japan ends negative interest rates
On 19 March 2024 the Bank of Japan ended its negative interest rate policy and its yield-curve control framework, lifting its policy rate to a 0–0.1% range. A month earlier the Nikkei 225 had finally surpassed the record it set in December 1989.
The shift closed a chapter in which Japan had been the world's low-rate anchor, funding investment around the world. It set up the currency and carry-trade volatility that followed that summer.
The takeaway
When the cheapest source of funding starts to rise, the effects show up far from the country that raised rates.
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