Financial markets deem BOJ's negative rates a failure
Tokyo
THE Bank of Japan's (BOJ) negative interest rates came into effect on Tuesday in a radical plan already deemed a failure by financial markets, highlighting Tokyo's lack of options to spur growth as global markets sputter.
The central bank, which announced the shock decision on Jan 29, will charge banks 0.1 per cent for parking additional reserves with the BOJ to encourage banks to lend and prompt businesses and savers to spend and invest.
While the announcement briefly drove down the yen and buoyed Japanese share prices, markets quickly went into reverse. "It's getting clearer that Abenomics is a paper tiger," said Seiya Nakajima, chief economist at Office Niwa, a consultancy, referring to Prime M…
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
G7 pledges swift aid for Ukraine, seeks to calm Middle East
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015
Warner Bros CEO earned US$49.7 million in strike-impacted year
Teheran signals no retaliation against Israel after drones attack Iran