BOJ’s Interest Payments on Excess Reserves Jump After Rate Hikes
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The Bank of Japan’s interest payments on excessive reserves reached a record high, underscoring the costs of policy normalization after it put an end to more than a decade of massive monetary stimulus in March.
The BOJ paid ¥392.2 billion ($2.6 billion) in interest on excess reserves in the first half of the fiscal year that started in April, according to its financial report released Wednesday. Overall net income fell 4.8% from a year ago to ¥1.84 trillion.