Monday, February 1, 2016

BOJ shocks markets with negative rates move



The Bank of Japan on Friday appalled monetary markets by adopting negative interest rates to forestall risks that world market volatility might injury business confidence and revive a deflationary mental attitude.

In a 5-4 vote, the financial organization determined to charge zero.1 % interest on current accounts that monetary establishments hold at the BOJ.

"The BOJ can cut interest rates additional into negative territory if judged as necessary," the BOJ same in a very statement asserting the choice.

BOJ Governor Haruhiko Kuroda can hold a group discussion at 3:30 p.m. (0630 GMT) to elucidate the policy move.

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