(Bloomberg) — The yen fell after the Bank of Japan brought an end to the world’s last negative interest-rate policy and emphasized that financial conditions will remain easy.
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The BOJ’s first hike in 17 years had been widely expected and Governor Kazuo Ueda struck a neutral tone at a news conference, saying there’s still a chance its inflation goal will not be hit. While the central bank scrapped its yield curve control program, it also pledged to keep buying long-term government debt.
Japanese bonds gained and the Topix closed at the highest since 1990. The yen slid 1% versus the dollar to 150.68. In a busy week for central bank decisions, attention now shifts to the Federal Reserve’s meeting on Wednesday.
“It’s a very, very dovish hike, as dovish hike as they come,” said Frederic Neumann, HSBC’s chief Asia economist, said on Bloomberg Television.
The dollar strengthened and Treasuries were…
