The volume of money market transactions in the two countries is quite substantial. The Bank will continue to carefully monitor developments in the money market, including how financial institutions adjust their computer systems and operations to cope with negative interest rate transactions. Concluding remarks We cannot deny that “QQE with a Negative Interest Rate” has an adverse effect on financial institutions’ earnings.
That said, let me reiterate that the aim of the policy is to benefit households and firms and ultimately to fully overcome deflation. The policy seeks to further reduce real interest rates and strengthen the effects of QQE, which has proven to be effective over the past three years.