TOKYO: Bank of Japan Governor Haruhiko Kuroda said Wednesday that pushing rates further into negative territory was off the table, reflecting both his upbeat inflation outlook and his concerns over the contentious policy measure.b “There is not much likelihood that we will further lower the negative rate” from the current minus 0.1%, Kuroda said in parliament, citing Japan’s accelerating growth.
The BOJ introduced the measure in January 2016, imposing a 0.1% charge on certain yen deposits held by commercial banks in an effort to strengthen bank lending and weaken the yen, among other potential benefits. However, its positive impact has been limited so far, while triggering a public backlash and threatening the financial health of commercial lenders. “My view is that the negative-rate policy has both positive and negative aspects in it,” Kuroda said.
