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Bank of Japan sends interest rates negative

Discussion in 'Property Finance' started by jaybean, 29th Jan, 2016.

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  1. jaybean

    jaybean Well-Known Member

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  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yep!
     
  3. Fullysickbro

    Fullysickbro Well-Known Member

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    Exciting times ahead
     
  4. wogitalia

    wogitalia Well-Known Member

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    It means their economy is so totally stuffed that they've now moved into a territory that doesn't really exist within traditional economics...
     
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  5. jaybean

    jaybean Well-Known Member

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    I remember about 15 years ago they called it the lost decade. It's interesting that more than a decade later it's still in limbo. There's literally a whole generation that has never seen good economic times.
     
  6. jaybean

    jaybean Well-Known Member

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    I guess this means export driven companies are about to get a boost on the stock market?
     
  7. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Japan with ageing population, no immigration and declining birth rate should take a leaf out of Costellos book and bring on the baby bonus rather than pumping their economy with cheap credit. Would actually work and be cheaper for them
     
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  8. Bran

    Bran Well-Known Member

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    Would be great if the bank started paying me interest for all the money I owe them. Who would be laughing then?

    PS. I don't want this to happen
     
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  9. jaybean

    jaybean Well-Known Member

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    Lol
     
  10. jaybean

    jaybean Well-Known Member

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    20 years ago: that's going to take too long, we need a solution now

    10 years ago: that's going to take too long, we need a solution now

    Present day: that's going to take too long, we need a solution now
     
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  11. Bayview

    Bayview Well-Known Member

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    The joint is too overcrowded as it is - 127 mill on that tiny area? :eek:

    Google
     
  12. dabbler

    dabbler Well-Known Member

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    Wait till they are negative 5%, then find a way to borrow and get the money out of the country (sounds like Yen is not much chop if they start paying you to take it).
     
  13. Azazel

    Azazel Well-Known Member

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    Does it mean you would pay interest if you had money in the bank?
     
  14. York

    York Finance Broker Business Member

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    I thought it meant the bank pays you interest for money you borrowed. :D
     
  15. WattleIdo

    WattleIdo renovating Premium Member

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    Surely both. Only in Japan.
    What a pity. But they are one of the few nationalities left where 'most people' are thorough breds. Their baby boom generation must be more overwhelming than here, the US or Europe.
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Japan is actually a multicultural country
     
  17. Bran

    Bran Well-Known Member

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    yep
    money sitting idle is the last thing they want
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    This is the equivalent of Japan's reserve bank is charging the bank for excess liquidity as a measure to incentivise the retail banks to start lending.

    This is not a measure which will affect the average punter.
     
  19. Omnidragon

    Omnidragon Well-Known Member

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    Japan's got some serious economic headwinds. They still haven't managed to get rid of that huge public debt. The original idea was to inflate it away, but that hasn't worked.

    Most people are not sure what's holding them back - obviously there's the usual suspects of aging population, lost of competitiveness against China, Korea and South East Asia. But they remain an innovative country, hard working relative to most western nations, their fixed income securities are lapped up by some class of investors. Perhaps because it's an Americano-Europa dominated finance economy, Japan hasn't been able to just spend its way out of debt since people no longer 'believe' in the fiat or the system, unlike America. I mean where in the world can most people do nothing, issue pieces of paper (these days they just add some '0s' to your 'bank account' whatever that really is), and trade it for the goods produced by hard working people in another country?

    Although China is heading into the same territory now. Interesting times ahead.
     
  20. Casteller

    Casteller Well-Known Member

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    Actually some other countries have negative interest rates, Switzerland is -0.75 % (lower than Japan), so banks depositing money with the SNB have to pay 0.75% interest. My Swiss bank account however pays 0.01%.
     
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