The unquestionable fact is that, not just a negative interest rate policy, but any kind of monetary easing reduces interest rates. The changes in interest rates could have different effects across individual entities in the short term; however, looking at the economy as a whole, a decline in interest rates brought about by monetary easing would likely stimulate domestic demand and expand the economy.
The bank’s determined commitment toward overcoming deflation and sustainable economic growth Japan has been mired in deflation for more than 15 years. For Japan to achieve sustainable economic growth in the future, the utmost priority is to overcome deflation at the earliest possible time.