Friday, January 29, 2016

Dear Japan, That's So Negative II

From FT Alphaville:

That was then, this is now: BoJ and negative rates edition (UPDATED)
Bank of Japan Governor Haruhiko Kuroda said he is not thinking of adopting a negative interest rate policy now, signalling that any further monetary easing will likely take the form of an expansion of its current massive asset-buying programme.
- Reuters, Jan 21
The Bank of Japan has adopted negative interest rates in their first benchmark rate move in five years, but has also chosen not to expand its quantitative and qualitative easing programme beyond its current level of buying Y80tn assets a year.
The BoJ has adopted a benchmark rate of -0.1 per cent, from a previous level of 0.1 per cent. It is the first time they have moved interest rates since October 2010….
The BoJ also indicated it has not ruled out further imminent easing, saying “it] will cut the interest rate further into negative territory if judged as necessary.”
- Now.
Wait, what?
Broadly speaking, JPY agreed:
Even if it looks like caveats took a little bit to be digested:...MORE