Japan’s largest industrial banks have allowed extra funds to languish in unfavorable interest-rate accounts on the Financial institution of Japan in December on the most because the introduction of the zub0zero coverage in 2016
When the coverage was first launched funds flowed elsewhere, a coverage intention of the BOJ.
Banks that had been reluctant to carry unfavorable interest-rate balances “seem to be changing their minds because if a policy exit is near, there is no need to forcefully invest funds to eliminate balances,” stated Naomi Muguruma, chief fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
“Another sign that sub-zero rate policy close to end” says Bloomberg. Extra right here on the hyperlink to Bloomberg (could also be gated).
BoJ
