Bank of Japan Reduces Funds Subject to Negative-Rate Policy
- Economist says this may be a softening of the new policy
- Bank stocks surge in Tokyo trading after the announcement
Japan's Negative Rates Fail to Boost Credit
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The Bank of Japan is reducing the share of funds financial institutions keep at the BOJ that will be subject to the new negative interest rate policy.
Enacting a technical adjustment that the central bank indicated was a possibility when it unveiled the new policy in January, the BOJ enlarged the share of new current-account funds that will be charged a zero percent rate. That portion is referred to as the macro add-on balance.