Bank of Japan Adopts Negative 0.1% Interest Rate Amid Economic Slump

The Bank of Japan adopted a negative interest rate of -0.1 percent.

The Bank of Japan adopted a negative interest rate of -0.1 percent.

MOSCOW (Sputnik) – The Bank of Japan adopted a negative interest rate of minus 0.1 percent for the first time on Friday, aiming to boost economic growth.

“At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided to introduce ‘Quantitative and Qualitative Monetary Easing (QQE) with a Negative Interest Rate’ in order to achieve the price stability target of 2 percent at the earliest possible time,” the bank said in a Friday statement.

According to the statement, the Bank of Japan will pursue monetary easing through various measures and may cut the interest rate further in the future.

“The Bank will apply a negative interest rate of minus 0.1 percent to current accounts that financial institutions hold at the Bank. It will cut the interest rate further into negative territory if judged as necessary,” the Friday statement said.

The decision to introduce the negative 0.1 percent interest rate was approved by a 5 to 4 majority vote.

The negative interest rate will be effective starting from February 16, 2016, according to the Bank of Japan.

The bank said it made no changes to its government bond purchases and plans to continue buying exchange-traded funds (ETFs) with the aim of increasing the monetary base at an annual pace of 80 trillion yen (about $670 billion).

The move comes amid Japanese Prime Minister Shinzo Abe’s plan to overcome deflation and revive the economy.


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Posted by on January 28, 2016, With 946 Reads Filed under Economy & Business. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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3 Responses to "Bank of Japan Adopts Negative 0.1% Interest Rate Amid Economic Slump"

  1. Altimometer  January 29, 2016 at 10:25 pm

    Corporations can borrow free money to buy up huge amounts of their own stock to give the appearance of high profitability to encourage out side investors who will of course be fleeced when the rate drops again and they have to sell. This is the marriage between wall street brokerage houses and the banks Clinton administered over.

  2. Foci  January 29, 2016 at 10:09 am

    Gonna be funny when that happens here. I give it 6-9 months. Then the fun begins. Wait until they drop the next hammer on 401K and pensions…How’s them oath keeper Cops and Firemen gonna like it when their pensions explode? Gonna bring whole new meaning to the term “moon lighting”.

  3. Howie  January 29, 2016 at 7:40 am

    I guess that’s one way of raising taxes.

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