BoJ Adopts A Negative Rate: What You Need To Know

HFA Padded
Rupert Hargreaves
Published on
Updated on
BOJ

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…

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk