As an indication that Japan has climbed back to economic normalcy, the Bank of Japan has ended its five-year “ultra-loose” monetary policy that was implemented to spare the country from deflation. Financial Times reports that the bank will now focus on keeping overnight call rates at zero, noting that it would take “a few months” before liquidity levels would return to a point that is consistent with a zero rate. According to FT, the bank did say it may allow “slight inflation” at signs that the economy is starting to deflate.
