- Summary: The Bank of Japan abandoned its five year zero interest rate policy Friday by raising short-term rates to 0.25% and stating that it would adjust the rate "gradually" in response to the economy and inflation. Its policy board supported the move unanimously. Economists expect the BoJ to continue to raise rates over the next two years. The zero interest rate policy was initiated in February 2001 when Japan was suffering from a weak economy and deflation; now Japanese economic growth is about 3% and consumer prices have been rising since November.
- Comment on related stocks/ETFs: See more detailed analysis of the impact on the banking sector including the large US bank stocks.
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