Skip to main content

Japan Cuts Interest Rates Because U.S. Raised Them For Some Reason

Negative interest rates!
  • Author:
  • Updated:

Turning in his J-Yells Fan Club membership card.

Janet Yellen may find herself drinking alone the next time the world’s central bankers get together, as her increasingly-inadvisable-lookingDecember rate hike has forced the Bank of Japan to join the negative-interest rate club to gird itself from the damage she hath wrought.

Japan’s central bank stunned the markets Friday by setting the country’s first negative interest rates, in a desperate attempt to keep the economy from sliding back into the stagnation that has dogged it for much of the last two decades….

The BOJ said it would leave unchanged the 0.1% rate on most existing reserves held at the central bank, while cutting the rate on required reserves to zero and charging 0.1% on reserves in excess of those required.

Bank of Japan Introduces Negative Interest Rates [WSJ]
Over a Fifth of Global GDP is Now Covered by a Central Bank With Negative Rates [WSJ MoneyBeat blog]



Mark Carney Proves He Can Raise Interest Rates

The outgoing Bank of England governor has made his highly inadvisable point.

By Cristian Bortes from Cluj-Napoca, Romania (London - Queue at Bank of England) [CC BY 2.0], via Wikimedia Commons

Bank Of England Unanimously Raises Rates In Spite Of Unanimous Lack Of Good Reasons

Mark Carney just had to know what more than 0.5% feels like.

Negative Swiss Interest Rates Are Definitely The New Normal

Based on things SNB chief Thomas Jordan has said in the past, at least.