With this in mind, overcoming deflation as soon as possible through decisive monetary easing is absolutely essential to returning Japan’s economy to a sustainable growth path, while the Bank will be watchful of the various effects of its low interest rate policy including negative interest rates.
The impact on the JGB market The second criticism I often hear concerns the impact of “QQE with a Negative Interest Rate” on financial institutions and financial markets. I recognize that the policy has various effects on financial institutions – not only in terms of their profitability, but also on their trading practices as well as their information and computer systems.