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

Negative interest rates!
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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]

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