Central Banks

Top Japan Bankers See Negative Rates to Stay as BOJ Roils Market

  • BOJ unlikely to raise rates unless outsider picked: person
  • Lukewarm reaction contrasts with banking share surge last week

Outside the Bank of Japan (BOJ) headquarters in Tokyo.

Photographer: Noriko Hayashi/Bloomberg
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Top executives at Japan’s biggest banks are expecting negative interest rates to linger and see little immediate earnings boost after a surprise move by the nation’s central bank pushed lenders’ shares up by 13% last week.

Earnings won’t enjoy a meaningful lift unless the Bank of Japan scraps negative interest, according to three senior executives, who asked not to be identified discussing central bank policy in public.