FT News Briefing Bank of Japan ditches negative rates
Mar 20, 2024
The Bank of Japan has raised interest rates for the first time in 16 years, signaling a significant shift in its monetary policy amid inflation concerns. Microsoft is doubling down on AI by hiring a prominent figure from Google's DeepMind. Meanwhile, Unilever plans to shed its ice cream business and cut thousands of jobs. The race is on among countries like Canada and the UAE to attract top AI startups, especially as regulatory pressures in the EU may drive innovation elsewhere.
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Microsoft's AI Move
- Microsoft hired Mustafa Suleyman, Google DeepMind's co-founder, to lead a new consumer AI division.
- This division will integrate products like Bing and Copilot, strengthening Microsoft's position in the AI race.
BOJ Raises Rates
- The Bank of Japan (BOJ) raised interest rates for the first time since 2007, signaling a potential end to its deflationary period.
- This move follows the BOJ's assessment that inflation is on track to reach its 2% target.
Japan's Deflationary Period
- Japan's economic struggles began in 1990 after its bubble burst, leading to deflation and zero interest rates.
- The BOJ's efforts to combat deflation included pioneering quantitative easing, influencing global monetary policy.