Adopting negative rate’s (BOJ)

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°CPI Japan (inflation figure) 0.291 %

The current Japanese interest rate BoJ (base rate) is 0.100 %

The Bank of Japan gave markets a nice surprise to end the month, It’s a bit too early to say whether we’ll finally get that long-lasting rebound.Stocks and bonds rallied around the world as the Bank of Japan unexpectedly stepped up monetary stimulus, joining other central banks responding to this month’s financial-market turmoil. The yen tumbled, while oil pared gains.

Japan’s 10-year bond yield touched 0.09 percent. Treasury 10-year note yields fell four basis points to 1.94 percent, while those on similar-maturity U.K. gilts dropped five basis points to 1.62 percent.

  • 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 Bank will introduce a multiple-tier system which some central banks in Europe (e.g. the Swiss National Bank) have put in place.

 

 

M.Magnolia ♦

 

 

 

 

 

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