Former Japanese Economy Minister Heizo Takenaka said on Wednesday the Bank of Japan will lower its minus 0.1 percent interest rate further to achieve its 2 percent inflation target.
(TRUNEWS Vero Beach, FL) – Takenaka stressed that “core-core inflation”, which excludes food and energy prices, rose around 1 percent last year, reversing the 1 percent decline seen before BOJ Governor Haruhiko Kuroda took the post early 2013.
“I think BOJ Governor Kuroda has been doing well, although there is strong criticism.”
The central bank will use the negative 0.1 percent interest rate it charges on a small portion of commercial bank reserves to keep yields low at the short end of the curve. But the move has proved unpopular with banks.
But he said the yen could face downside pressure if the Federal Reserve raises U.S. interest rates this year and the BOJ lowers its negative interest rates.
TRUNEWS reported back in August the dangers the Bank of Japan entering negrative rate territory.
Full article: Bank of Japan Going Even Deeper Into Negative Rates (TruNews)