The Bank of Japan has just that it will adopt a negative interest rate policy for the first time.
The central bank said it cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%.
The bank decided to introduce negative rates to “pre-empt the manifestation of [downside] risk and to maintain momentum to achieve the price stability target of 2%,” the BOJ said in a statement released after a two-day policy meeting.
“We will cut the interest further into negative territory if judged as necessary,” the central bank said.
The vote count was 5-4 in favor of negative interest rates.
We are in a near global crazed money printing phase. This is not going to end well.