Japan’s economy slowed to avoid announce negative interest rate

Japan's economy slowed to avoid announce negative interest rate

Japan’s economy slowed to avoid announce negative interest rate

Tokyo … News Time

World Bank loans have interest in them, but the world’s third-largest economic power, Japan is flowing in the opposite where the central bank to stimulate investment and growth to improve as a negative surprise to bring interest rates announced submit the capital and pay interest itself. Japan’s central bank announced interest rate of negative 0.1 percent would mean commercial banks on their accounts with the central bank at a rate of 0.1 percent would renditions economists are expecting that it will stimulate commercial banks to lend and the economic slowdown in the world’s third-largest economy will be possible to eliminate. European Central Bank interest rate is negative but has been the first time in Japan. Negative interest rates of the Central Bank of Japan’s decision earlier this year by a margin of only one vote in the meeting said. 4 members at the meeting in opposition to the proposed negative interest rate the 5 members voted in favor of the proposal however, the negative interest rates, economists have expressed reservations on the effectiveness. The inflation rate is very low in Japan at that time the common people and companies are saving on the assumption that they can earn more profits in the future. Instead of using the money to invest or keep it in banks prefer it is now expected that the central bank to keep interest rates on investment instead of receiving bank loans will attract. This trend will have to spend at the local level and increase investments. Experts say that inflation is a goal people and businesses to spend rather than save for another trick will be.


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