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5 May 2016
Fitch: Japan’s negative rates struggling to find traction
Headlines crossing from the US ratings agency, Fitch, on the Japanese monetary policy:
Japan's negative rates struggling to find traction
Too early to assess effectiveness of negative interest rate policy in combating deflation
"Understanding of unorthodox monetary policies and of risks that may be associated with them is limited"
Reduction in Bank of Japan's perceived room for policy manoeuvre would weaken support that Japan's 'A'/stable sovereign credit rating
Indications so far in 2016 - in consumer prices, business expectations and banks' lending attitudes - are not encouraging
Japan's negative rates struggling to find traction
Too early to assess effectiveness of negative interest rate policy in combating deflation
"Understanding of unorthodox monetary policies and of risks that may be associated with them is limited"
Reduction in Bank of Japan's perceived room for policy manoeuvre would weaken support that Japan's 'A'/stable sovereign credit rating
Indications so far in 2016 - in consumer prices, business expectations and banks' lending attitudes - are not encouraging