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BOJ Doesn’t Expect Market Backlash if Rate Cut Is Necessary

From bnnbloomberg.ca

Bank of Japan officials think lowering the negative interest rate, if they chose to do so in the coming months, wouldn’t backfire in financial markets because investors are aware of the possibility, according to people familiar with the matter. While most officials wouldn’t be drawn on when the BOJ might act, some of the officials see little need to rush into taking action given recent stability in financial markets and continuing robust demand in Japan, the people said. Governor Haruhiko Kuroda has repeatedly said cutting the negative rate is an option should the BOJ need to give more support to the economy and ... (full story)

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