The Bank of Japan today announced the end of its negative interest rate policy and increased borrowing costs for the first time in 17 years. The central bank in a statement said, it will encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 per cent, moving them from their previous level of negative 0.1 percent.

It was Japan’s first interest rate hike since 2007 and marks an end to a prolonged period of ultra-loose monetary policy aimed at stimulating the economy.

Local media reported that in recent months, for the first time in years, inflation in Japan was approaching the Bank of Japan’s 2 percent target level.