Japan adopts negative interest rate in surprise move | WHAT REALLY HAPPENED


Japan adopts negative interest rate in surprise move

In a surprise move, the Bank of Japan has introduced a negative interest rate.

BBC: The benchmark rate of -0.1% means that commercial banks will be charged by the central bank for some deposits.

It is designed to encourage them to use their reserves to lend to businesses in an attempt to counter Japan's economic slump.

The charge does not directly apply to ordinary customers' accounts.

The country is desperate to increase spending and investment.

Desperate

One of the side effects of a moribund economy is falling prices - something that can send an economy into a downward spiral

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