BOJ Deputy Chief Hints That Negative Rate End May Be Closer
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Bank of Japan Deputy Governor Ryozo Himino signaled that the central bank is inching closer to putting an end to the world’s last negative interest rate regime by laying out a hypothesis for what might happen if indeed rates go positive.
While Himino reiterated a standard pledge to continue with monetary easing until the BOJ achieves its goal of sustainable inflation with wage increases, he then outlined the various potential impacts that would follow an exit from large-scale stimulus partly by examining what happened when rates went negative.