Negative Rates Fail to Spur Japan Bank Loans in First MonthBy
Deposits grow even after banks cut interest rates to 0.001%
BOJ’s policy won’t have an immediate effect: HSBC’s Shirota
Japanese loan growth slowed slightly in February and deposits accelerated — the opposite effect sought by the central bank as it began its negative interest-rate program.
Loans rose 2.2 percent from a year earlier, easing from a revised 2.3 percent in January, the Bank of Japan said in a statement Tuesday. Deposits climbed 3.1 percent in February, faster than 2.9 percent a month earlier.
It may be too early to draw firm conclusions from the data on the effectiveness of the central bank’s negative interest-rate policy, which was implemented on Feb. 16. The BOJ began charging lenders 0.1 percent interest on some of their reserves to stimulate the economy by lowering borrowing costs and spurring banks to lend more of their spare cash…
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