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muriel_volestrangler

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5. just accounts at the central bank belonging to financial institutions

Fri Jan 29, 2016, 11:09 AM

Jan 2016

though it presumably has a knock-on effect on other accounts, that will have a decrease in rates too.

The shift to negative interest rates – which in effect “taxes” financial institutions for parking excess reserves with the BoJ – is seen as an attempt to drag Japan out of its deflationary mindset.

The benchmark rate of -0.1% means that commercial banks will be charged by the central bank for some deposits.

It is designed to encourage them to use their reserves to lend to businesses in an attempt to counter Japan's economic stagnation.

The charge does not directly apply to ordinary customers' accounts.

http://www.bbc.co.uk/news/business-35436187

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Bank of Japan shocks markets by adopting negative interest rates [View all] muriel_volestrangler Jan 2016 OP

So, they want everyone to take their money out of the bank? Kelvin Mace Jan 2016 #1

to get the economy moving Randomthought Jan 2016 #2

So, does this affect all accounts Kelvin Mace Jan 2016 #3

just accounts at the central bank belonging to financial institutions muriel_volestrangler Jan 2016 #5

Thanks. Kelvin Mace Jan 2016 #12

Tiered Randomthought Jan 2016 #6

Doesn't this already exist elsewhere, like London? Gregorian Jan 2016 #4

Not, as far as I know, in London, but isnsome other European countries muriel_volestrangler Jan 2016 #7

It's not people - but the banks Thav Jan 2016 #8

I'm wondering though GummyBearz Jan 2016 #9

Banks have so many schemes Thav Jan 2016 #10

There is more to penalize GummyBearz Jan 2016 #11