“QQE with a Negative Interest Rate” exerts stronger downward pressure on interest rates across the entire yield curve by lowering long-term yields through the Bank’s continued massive purchases of long-term JGBs as well as by lowering short-term interest rates through applying a negative interest rate to part of the current account balances held by financial institutions at the Bank.
This results in further lowering real interest rates and enhances the transmission of policy effects I just mentioned. 4  BIS central bankers’ speeches  The policy has already exerted the intended effects on interest rates.