Japan raises interest rates, ending years of deflation

JAPAN’S central bank raised interest rates for the first time in six years yesterday, lifting its key rate to 0.25% from 0% and affirming the end of a long era of deflation and economic stagnation.

The Bank of Japan (BOJ) joined central banks in the US and Europe that have already embarked on a credit-tightening cycle, although Japanese interest rates remain minuscule and are likely to stay low for a long time yet.

“We are finally entering a period of having interest rates,” BOJ governor Toshihiko Fukui told a news conference. “That is a delightful moment for the future of the Japanese economy.”