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Weekly Business News [March 23 Edition]

The Bank of Japan raised interest rates for the first time since 2007. The target rate for overnight loans was increased from a range of -0.1% to 0% to a range of 0% to 0.1%, indicating the end of the bank’s negative interest rate policy. Additionally, it abandoned yield-curve controls, signaling a shift in monetary policy direction. Despite these changes, Governor Ueda Kazuo emphasized the continued maintenance of accommodative financial conditions. The bank will continue to purchase approximately ¥6 trillion ($40 billion) in government bonds monthly.

The Bank of England opted to maintain its existing interest rates. Meanwhile, the UK saw a significant decline in its annual inflation rate, dropping to 3.4% in February from 4% in January.

The Fed left interest rates unchanged and issued new quarterly economic projections. Officials now anticipate the U.S. economy to grow by 2.1% this year, exceeding its long-term potential, a significant upgrade from the 1.4% growth forecasted in December.