The Bank of Japan (BoJ) made history overnight when the policy board of the bank decided to introduce “Quantitative Monetary Easing with a Negative Interest Rate.” This decision means that the BoJ will now apply a negative interest rate of minus 0.1% to the marginally increased part of current accounts that financial institutions hold at the bank. BoJ: A three-tier system In the implementation of this system, the bank will adopt a three-tier system. The outstanding balance of each financial institution’s current account at the bank will be divided into three tiers, each of which will receive a different interest rate. 1) Basic…
BoJ Adopts A Negative Rate: What You Need To Know
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