BOJ Exploring Deeper Negative Rates

The Bank of Japan plans to make its controversial negative interest rate policy the centerpiece of its future monetary easing program, promising to weigh further cuts as expansions to asset buying near their effective limit.



The central bank has pledged a comprehensive assessment of its monetary policy at a two-day meeting starting Tuesday. The BOJ is expected to compile a review concluding that the economic benefits of the minus 0.1% deposit rate announced in January outweigh the side effects. Gov. Haruhiko Kuroda and his deputy governors are unanimous on this point, and are expected to gain support from the majority of the other policy board members.

Some observers had predicted that the bank would use the review as a chance to scrap negative rates in light of objections from the financial sector over diminished profitability. The BOJ instead appears intent on sticking to the policy. 

via Nikkei

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza