BoJ’s Shirai explains why negative rates fit Europe better than Japan
Policy board member Sayuri Shirai says impact of rates varies according to market structure
Bank of Japan (BoJ) policy board member Sayuri Shirai outlined why negative interest rates were better suited to Europe than Japan during a panel discussion on September 8 – arguing they would do little to boost inflation expectations.
The European Central Bank (ECB) cut its deposit rate to –0.1% and then –0.2% in June and September 2014 as it sought to stave off the threat of deflation. The BoJ, in contrast, kept its interest on excess reserves (IOER) positive, at 0.1%.
Shirai explored the
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