Japan?s decade of deflation was officially declared over on Thursday when its central bank ended five years of ultra-loose monetary policy and moved to a regime of managing interest rates.

The Bank of Japan decision, which came a month earlier than many had expected, marks a decisive statement by the bank that the world?s second-biggest economy has returned to normality after 15 years in post-bubble doldrums. The move was also an assertion of the central bank?s independence following intense pressure from politicians not to tighten prematurely and risk choking off Japan?s most promising recovery in years.