The Bank of Japan has made a historic shift by ending the era of negative interest rates, marking the first time since 2007 that borrowing costs have been raised. This move comes after years of ultra-loose monetary policy aimed at stimulating the economy. The central bank will now guide the overnight interest rate to remain in a range of about zero to 0.1 per cent. The positive impact of this policy shift is already evident in the Japanese economy with increased pay rises, higher wages, and a confident investment market. Despite the return to positive interest rates, the bank has signaled a cautious approach due to unanchored inflation expectations. This decision is likely to have global implications on investment flows. The Bank of Japan's new forward guidance gives flexibility for future rate increases, reflecting the uncertain economic conditions. This significant change in monetary policy is expected to influence the global economy and investment landscape in the coming years.