BOJ: Considering steps to provide relief to financial institutions - Investec

Research Team at Investec, notes that the Japanese Yen erased yesterday's gains and the Nikkei rallied as Bloomberg reported the 'Bank of Japan (BOJ) is considering steps to provide relief to financial institutions.'

Key Quotes

“The article stated the BOJ may consider offering a negative rate on some loans to banks to help facilitate lending. The move would likely ease some potential burden of the current tiered negative interest rate structure in Japan, particularly if the BOJ made the decision to make a deeper cut to the current negative rate on reserves. The currency weakening is seen as a positive for the Japanese economy, and the report helped support bank stocks in particular.”