ANKARA

Japan decided Tuesday to end its negative interest rate policy and introduce a rate hike for the first time in 17 years, local media reported.

The decision taken by the Bank of Japan, the country’s central bank, is a significant step away from its unprecedented monetary easing framework of the past decade that was intended to end deflation, Tokyo-based Kyodo News reported.

The bank also dropped its pledge to take additional easing steps if needed, while it also decided to guide the short-term rate in the 0-0.1% range, it said.

Japanese Prime Minister Fumio Kishida praised the Bank of Japan's monetary easing framework for combating deflation and pledged to continue working with the bank for price stability.

Kishida told reporters that the policy change signifies a move toward achieving "positive economic outcomes" while maintaining an "accommodative environment," following his discussion with BOJ Governor Kazuo Ueda.