Bank of Japan Raises Interest Rates for First Time in 17 Years The Bank of Japan increased interest rates for the first time since 2007, signaling a milestone in its efforts to rejuvenate the struggling economy. The move comes as the country experiences signs of stronger growth and rising inflation. The central bank's decision to move interest rates above zero is seen as a significant step in its policy normalization. The shift away from negative interest rates is expected to strengthen the country's currency and attract more foreign investment. Despite the rate increase, Japan's interest rates remain significantly lower than those of other major developed economies. The move was influenced by the recent surge in wages and price increases, indicating a more robust economy. The bank's decision to scrap policies on bond purchases and real estate investments reflects its confidence in the economy's turnaround. The central bank plans to maintain an accommodative policy and monitor the economy closely before making further policy changes. The rise in interest rates makes investing in Japan relatively more rewarding for foreign investors, although returns abroad still remain attractive for Japanese investors. The country's major commercial banks have announced slight increases in the interest paid to depositors in response to the rate hike.