Friday, January 29, 2016

Central Banks: penalty rate for banks now in Japan – ABC Online

Friday , 01.29.2016, 12:52
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Japan’s central bank chief Kuroda is always good for a surprise. Now he leads a negative interest, like colleagues are already in Europe. But really

meets the “Kuroda Bazooka” at the end of the finish line? Even in Japan should help penalties for banks to stimulate the ailing economy. The central bank in Tokyo decided surprisingly the introduction of a negative interest rate

His goal is to commercial banks -. Similar to already in the euro area – keep them to park large amounts of money at the central bank, rather than for as loans to assign investment to the company.

As the Bank of Japan (BoJ) announced after the conclusion of two days of deliberations on Friday, a rate of -0.1 percent is subsequently imposed on certain commercial banks deposits. Since 2014, the European Central Bank (ECB) drives such a strategy, in the euro area of ​​negative deposit rates currently stands at -0.3 percent.

It will further cut interest rates in the minus range, this should be necessary , said the central bankers of the third largest economy in the world. The decision was made just 5 to 4 votes. Some economists doubt, however, on the effect: Without structural reforms will not get to his feet Japan’s economy

In addition to the often criticized as too slow lending the low inflation is also Japan a problem.. The BoJ decided to expand the money supply unchanged by 80 trillion yen (about 617 billion euros) per year – this is fueling inflation. Failing that in the long run, consumers and companies could move in anticipation of continued falling prices and investment purchases more and more. Then, the entire economy could threaten a downward spiral.

The Tokyo Stock Exchange moved in response to the decisions of the Federal Reserve sharply. The Nikkei index of 225 blue chips climbed by 476.85 points or 2.80 percent to the level of 17 518.30 points, while the Japanese yen fell sharply compared to other currencies. The Frankfurt Stock Exchange to put.

The central bankers in Japan are struggling to achieve an inflation target of two per cent after nearly two decades steadily falling prices. But that turns out not least because of the difficult rapid fall in oil prices. Now the BoJ moved the target again to the rear; it is targeting the 2 per cent inflation rate for the first half of the financial year 2017/2018, which begins on 1 April. For the next fiscal year, it now goes from 0.8 percent inflation. In October, the expectation was still here at 1.4 percent.

On the financial market, the pressure on the central bank has recently grown to loosen monetary policy because of the slump in the biggest trading partner of China, and the low price growth in Germany again , The flood of money is in addition to debt-financed boosts to the economy pillar of the “abenomics” said economic policies of Prime Minister Shinzo Abe. In addition, Abe promised structural reforms -. But just because there is a lack in the opinion of economists

The problem is not that the banks unwilling were to lend, said Martin Schulz, an economist at Fujitsu Research Institute. Rather, the company saw no reason to invest more and take this loan. Not even negative interest rates did not change. Experts of the Landesbank Baden-Württemberg appreciated this similar one: “It’s hard to realize that Japanese banks are expanding their lending because of a minimum interest rate.”

Meanwhile, the BoJ revised its growth forecast for the still to 31 March 2016 current tax year to 1.1 percent lowered from 1.2 percent previously. The following year, the economy is expected to grow by 1.5 per cent then held 1.4 percent according to estimates of the central bankers. The Japanese industrial production fell again in December more than expected: they fell by 1.4 per cent over the previous month


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