Japan'S Negative Interest Rate Triggering Global Criticism

The Bank of Japan introduced negative interest rates in February this year, but it did not seem to have any effect.

The yen demand showed no signs of abating. The exchange rate hit a 17 month high of 107.63, prompting the Japanese government to warn against possible measures to depress the yen.

The rise of the yen has raised the pressure on the Japanese government to take action to deal with it.

The negative interest rate policy introduced by the Japanese central bank to boost the economy and inflation is being criticized by more and more analysts.

On Tuesday, the Wall Street Journal quoted Abe Jin San Yan as saying: "I think we should curb arbitrary intervention in the foreign exchange market."

The remarks prompted the market to rapidly increase the expectation that Japan will not intervene in the yen exchange rate.

Japan

The negative interest rate policy has not yielded positive results and has been depleted.

Since the Bank of Japan unexpectedly launched a negative interest rate, a series of strong criticism and confusion came into being.

Gu Zhaoming, chief economist at Nomura Research Institute, even said that negative interest rates represented "rational bankruptcy" of decision makers.

Shirakawa Hiromichi, chief economist at Credit Suisse, said

It has been unpopular at home and abroad, and it is very difficult for the BoJ to cut the benchmark interest rate quickly.

Morgan, a senior economist at JP chase, said that for Kuroda Higashihiko, it is now a very difficult period. Because of negative criticism of negative interest rates, it is very difficult for the Bank of Japan to implement further easing policies.

Too far away.

Analysts predict that Japan's central bank, which is about to run out of supplies, will probably buy more stock assets on a larger scale.

Mathews, head of Asian Research at Baosheng bank, Switzerland, said: "they tried negative interest rates, but they did not work.

I think they will announce more measures next year, probably through the stock market. "

As the economic growth forecast remains low, inflation is also lower than the central bank's target value of 2%, analysts predict that the central bank will continue to promote monetary easing policy.

Analysts said that the Bank of Japan should further implement the easing policy, because the economy continued to grow in low inflation, inflation still failed to achieve the central bank's inflation target of 2%.

The results of the next policy meeting will be announced in April 28th.

In addition to buying Japanese government bonds, the Bank of Japan has implemented a 80 trillion yuan quantitative easing policy to invest in real estate investment trusts, exchange traded funds and corporate bonds.

Taro Aso, Japan's finance minister, said on Friday that rapid fluctuations in exchange rates were not desirable and action would be taken if necessary.

He said that the foreign exchange market has been fluctuating unilaterally. Excessive fluctuations in the foreign exchange market will have adverse effects and will take action when necessary. Neither the BoJ nor the government want to see the rapid fluctuation of the yen exchange rate, and do not want to see the rapid devaluation or appreciation of the yen.