BOJ negative rate seen as top tool by analysts
80% of respondents polled by Bloomberg see a further cut to the negative rate as the most likely action that Kuroda will take
Tokyo
THE Bank of Japan's (BOJ) new negative rate is the most likely tool for any expansion of stimulus, with a majority of economists in a survey forecasting additional easing by July.
Eighty per cent of analysts see a further cut to the negative rate as the most likely action for governor Haruhiko Kuroda, and almost 90 per cent see more easing coming at one of the four meetings till the end of July. Only five of 40 economists expect additional stimulus at the meeting ending on March 15, according to the survey by Bloomberg.
The bank shocked markets in January with the negative rate policy, which means that it charges financial institutions on some of their reserves at the BOJ.
The effects of that decision are still being felt - yields on more than 70 per cent of government debt are now below zero, money market funds stopped accepting investments, and bank shares have tumbled on …
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