Effect of QQE with negative rates already seen in JGB yields falling further – BOJ’s Nakaso

By FXStreet Additional comments from BOJ Nakaso flowing in via Reuters are as under:

Topping up asset buying remains an option as well as deepening negative rates if BOJ were to ease again

Japan’s economic fundamentals are solid, no need to be excessively pessimistic

Of 260 trln yen in reserves parked with BOJ, negative rates will be applied to around 10 trln yen

Effect of QQE with negative rates already appearing with JGB yields falling further

Japan must tackle challenges to raise medium-term growth potential to achieve sustainable economic growth

Strongly hope govt continues committing to structural reform without loosening the reins

Monetary policy to overcome deflation, structural reform to raise Japan’s growth potential must be pursued in tandem to achieve sustainable growth

Expect original third arrow of Abenomics to fly higher and faster with BOJ’s introduction of QQE with negative rates
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Source:: FX Street