Japan’s central bank raises interest rates for first time since 2007: ‘treading on thin ice’

The BOJ’s outlier policy of negative rates and massive asset purchases was aimed at jump-starting economic growth and price rises after the “lost decades” of stagnation and deflation.

But on Tuesday, following months of speculation, the BOJ finally changed its policy rate range from -0.1 per cent to between zero and 0.1 per cent, in its first hike since 2007.

As US government bonds surge, it’s a different story for China and Japan

Officials “assessed the virtuous cycle between wages and prices” and concluded that “the price…