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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (15818)	2/8/2016 9:41:36 AM
From: Goose94	Read Replies (1) \| Respond to of 203382

Bank of Japan policymakers were deeply divided over the negative interest rate decision in January, summary of opinions showed Monday. Policymakers took the interest rate to negative zone at the meeting held on January 28 and 29. Five members voted in favor and four others dissented. Pros and cons of a further cut in the interest rate have been widely discussed. One member argued that negative interest rate will affect the stability of the government bond purchases, and lead to an increase in potential instability of the financial system. "Negative interest rate will have larger side effects on the functioning of financial markets and the financial system than positive effects on the real economy," the summary showed. Another member said the introduction of a negative interest rate may give an impression to the market that the Bank's monetary policy is approaching its limit. One member said the negative rate could lead to a competition with central banks in other countries, which already have adopted negative interest rates. One member was concerned that financial markets would expect further cuts in the interest rate into negative territory. Nonetheless, the majority said the bank should introduce quantitative and qualitative easing with a negative interest rate to maintain momentum towards achieving 2% inflation. At the January meeting, the BoJ also decided to hold its target of raising the monetary base at an annual pace of about JPY 80 trillion .