Bank of Japan to Raise Interest Rates Gradually

The Bank of Japan is abandoning the "super easy" monetary policy it has kept for the last five years, reports the Associated Report. Instead, Japan will gradually raise interest rates and start to cut the excess cash in the banking system amid signs of economic recovery.

However, the central bank is sending a clear message that the transition will be slow, saying benchmark interest rates will remain near zero for some time. It also said it will gradually reduce the amount of liquidity in the banking system over several months.

The policy maintained for the last five years is known as quantitative easing.