FXStreet (Delhi) – Richard Koo, Research Analyst at Nomura, suggests that the market’s reaction to the BOJ’s action showed that an overwhelming majority of people in the equity and forex markets—both in Japan and elsewhere—continue to hold textbook economic assumptions about how monetary policy will work in today’s environment. Key Quotes “Moreover, the sharp reaction of overseas market participants to the BOJ’s announcement suggests they see negative interest rates as a global trend. Negative interest rates had been limited until now to the eurozone and a small number of European countries such as Denmark, Sweden and Switzerland. Now, they argue, Japan’s decision to join them has transformed this into a global trend. Some market participants even now think the US, which has shown signs of a slowdown since late last year, will eventually adopt a negative interest rate regime as well.” For more information, read our latest forex news.