Effect of QQE with negative rates already seen in JGB yields falling further – BOJ’s Nakaso

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Additional comments from BOJ Nakaso flowing in via Reuters are as under:

    Topping up asset buying remains an option as well as deepening negative rates if BOJ were to ease again

    Japan's economic fundamentals are solid, no need to be excessively pessimistic

    Of 260 trln yen in reserves parked with BOJ, negative rates will be applied to around 10 trln yen

    Effect of QQE with negative rates already appearing with JGB yields falling further

    Japan must tackle challenges to raise medium-term growth potential to achieve sustainable economic growth

    Strongly hope govt continues committing to structural reform without loosening the reins

    Monetary policy to overcome deflation, structural reform to raise Japan's growth potential must be pursued in tandem to achieve sustainable growth

    Expect original third arrow of Abenomics to fly higher and faster with BOJ's introduction of QQE with negative rates
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