THE BANK OF JAPAN’S NEGATIVE INTEREST RATE Case Solution
This case is about Business
On January 20 2016, the BOJ held a financial policy conference at which chose to present ‘Qualitative and quantitative Monetary Easing (QQE) with a Negative Interest Rate’ to provide the 2% rate stability target within the fastest possible time. Henceforth, the BOJ pursued financial alleviating by managing 3 substantial financial measurements: interest rate, quality, and amount. When the BOJ struck the absolutely no lower bound and discovered itself with no more space to lower small short-term interest rates, it engaged in belligerent federal government bond purchases in an effort to lower rates throughout all durations.