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BOJ's Nakaso: Effect of negative rates already appearing: JGB yields falling further

Bank of Japan Deputy Governor Hiroshi Nakaso. Speaking at a meeting with business leaders in Okinawa.

There will be a news conference later also

  • Topping up asset buying remains an option as well as deepening negative rates if BOJ were to ease again
  • Japan's economic fundamentals are solid, no need to be excessively pessimistic
  • Expect inflation to reach 2 pct around first half of fiscal 2017
  • Of 260 trln yen in reserves parked with BOJ, negative rates will be applied to around 10 trln yen
  • Effect of QQE with negative rates already appearing with JGB yields falling further
  • Don't think retail deposit rates will turn negative in japan, judging from experiences in Europe
  • Japan must tackle challenges to raise medium-term growth potential to achieve sustainable economic growth
  • Strongly hope govt continues committing to structural reform without loosening the reins
  • Monetary policy to overcome deflation, structural reform to raise Japan's growth potential must be pursued in tandem to achieve sustainable growth
  • Expect original third arrow of Abenomics to fly higher and faster with BOJ's introduction of QQE with negative rates

Headlines via Reuters

more to come

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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