What the BOJ’s conversion to negative rates policy did change and what it did not change

Posted on 02. Feb, 2016 by Jean Jacques Ohana in Weekly Focus

February 2, 2016

The BOJ surprised markets on Friday by adopting a negative interest-rate strategy requiring financial institutions to pay the central bank in order to park their cash beyond required reserve levels.

The “pay-to-save strategy” has now been adopted in Sweden, Denmark, Switzerland, and by the European Central Bank. The pretext behind this policy is to [...]