Financial Academia


<NEGATIVE INTEREST> prospects of Japanese Economy

Bank of Japan has announced they introduse negative interest toits fixed deposit on 29th January in 2016. This is the first time for BOJ to take this method. 






This news bring a big surprise to commercial bank in Japan. In Japan, the interst of saving account has already been very low at 0.02% and that of morgage has also been law at 0.7%. Furthemore, interest of Japan Bond is 0.3%. As you see, Japan has been under the low interest economy for many years.




After announcement of BOJ, many banks has announced that they also lower the interst of saving account deposit, fixed account and morgage. This is a good news for citizen because they come to be able to buy homes and cars.


 But the environment of investment in Japan is very very hard because of its low interest. We Japanese cannot get a lot of interest benefits from bank deposit, Japan Bond and Funds. There is a only thing worth investing. That is property. Being properties in Japan not so expensive, and the interest would come to be lower due to negative interest of BOJ, it would be much easier for Japanese people to buy their homes and cars.