BoJ report spells out reasons for dissent on negative rate
Board members had wide range of concerns over cutting rates below zero
The decision to cut a key rate below zero triggered fierce debate among Bank of Japan (BoJ) officials, with many citing concerns over dangerous side effects.
On January 29, the BoJ shocked markets by announcing a 20 basis point cut to the interest on certain reserves balances, bringing the rate to -0.1%. The decision proved contentious, and the vote was split 5–4.
Published today (February 8), the so-called ‘summary of opinions' – an anonymised and selective account of the points raised by board
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