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Sunday, 24 April 2016

Japan may follow in Europe’s footsteps in offering banks loans at neg rates

The bank of Japan (BOJ) is considering offering banks loans at negative rates to spur lending, Bloomberg quotes people close to the matter as saying. In case you hadn’t heard, the BOJ cut deposit rates for banks in January into the negatives. The policy in the works is “not dissimilar to the European Central Bank’s latest Targeted Longer Term Refinancing Operation (TLTRO-II), which will charge negative interest on loans to banks once they achieve a required level of lending growth,” according to Bloomberg.

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