if you want to buy apple account, choose buyappleacc.com, buyappleacc.com is a best provider within bussiness for more than 3 years. choose us, you will never regret. we provied worldwide apple developer account for sale.
TOKYO - The Bank of Japan's policy review in March has made it easier for the central bank to deepen negative interest rates to combat any yen spike that threatens a fragile economic recovery, a former executive said on Monday.
As part of a review of its policy tools announced earlier this month, the BOJ created a scheme that pays up to 0.2% interest to financial institutions that tap its loan programmes.
The move was aimed at easing the strain prolonged ultra-low interest rates had inflicted on financial institutions and dispelling dominant market views such side-effects will prevent the central bank from cutting rates further.
"With no means left to accelerate inflation to its 2% target, the BOJ's focus has been to keep market stable. That's something the BOJ can do and believes it must keep doing," said Kazumo Momma, who retains close contact with incumbent policymakers.
"If changes in economic fundamentals trigger a sharp yen rise, the BOJ will surely eye deepening negative rates. Compared with before the BOJ conducted the review, it can more easily deepen negative rates," he told Reuters in an interview.
Under a policy of yield-curve control (YCC), the BOJ guides short-term rates at -0.1% and the 10-year bond yield around 0% as part of efforts to prop up growth and inflation.
YCC, as well as its years of huge asset buying, has failed to push inflation to the bank's 2% target, forcing the BOJ to conduct the review to make its stimulus more sustainable.
Momma, currently economist at Mizuho Research Institute, said the review failed to look seriously at the hard truth that years of huge money printing failed to achieve 2% inflation.
"In Japan, inflation rarely hit even 1% in the past 25 years," Momma said. "I don't think COVID-19 has changed the fact structural factors will keep Japan's prices persistently low." REUTERS