<h4>Breaking: Central Bank Of Japan Sets Record With Negative Rate</h4>
<p><strong><a href="https://openlife.ng/">OpenLife Nigeria</a></strong> has gathered that Japan&#8217;s Central Bank has Set a record to be world&#8217;s only central bank with negative rate.<br />
This followed the decision by Haruhiko Kuroda, the bank&#8217;s governor, to maintain its ultraloose monetary policy, as it continues to buck the global tightening trend, following the U.S. Federal Reserve&#8217;s sharp interest rate increase overnight.<br />
After a two-day policy meeting, the BOJ&#8217;s board on Thursday, as expected, decided to keep its monetary policy unchanged. Under its &#8220;yield-curve control policy,&#8221; the bank can purchase Japanese government bonds without limit to guide 10-year government bond yields to zero and short-term rates to minus 0.1%.<br />
&#8220;Some market players girded for a very small chance of the BOJ taking action against the yen weakness. It did nothing, however,&#8221; said Hideo Kumano, chief economist at Dai-ichi Life Research Institute.<br />
Kumano pointed out that the BOJ just added one short sentence to its policy statement: &#8220;It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan&#8217;s economic activity and prices.&#8221;<br />
The BOJ will continue its daily unlimited fixed rate operations at 0.25% as the central bank continues to counter skepticism about its ability to maintain rigid interest rate controls in the face of elevated global inflation.<br />
The Japanese yen hit a new 24-year low of 145 against the dollar after the decision. This prompted Masato Kanda, Japan&#8217;s top currency diplomat, to say authorities were &#8220;standing by&#8221; to intervene if necessary.<br />
&#8220;We are ready to take action anytime,&#8221; said Kanda, Japan&#8217;s vice finance minister for international affairs, after the yen crossed 145. &#8220;We cannot tolerate excess volatility and disorderly currency moves.&#8221;<br />
The Fed on Wednesday raised its benchmark rate 75 basis points to 3%-3.25%, the highest level in 14 years. New projections by Fed officials showed that most of them expect the policy rate to rise to 4%-4.5% by the end of the year.<br />
Later Thursday, the Swiss National Bank is expected to raise its policy rate from minus 0.25%, ending its negative rate policy. With the <a href="https://openlife.ng/">European Central Bank</a> having already ended its negative rate policy in July, the BOJ is set to be the only major central bank with a negative benchmark rate.<br />
The BOJ decided to extend by six months through the end of March 2023 an emergency COVID funding facility that provides one-year interest-free liquidity to banks for small business loans. The facility was launched in March 2020.<br />
But the BOJ retained also its easing bias in its &#8220;forward guidance,&#8221; the likely future direction of its monetary policy. The Japanese central bank retained the wording that it &#8220;will not hesitate to take additional easing measures if necessary,&#8221; and, &#8220;It expects short- and long-term policy interest rates to remain at their present or lower levels.&#8221;<br />
Without any action from the BOJ, the responsibility of dealing with the impact of high inflation and the weak yen falls on the shoulders of <a href="https://asia.nikkei.com/">Prime Minister Fumio Kishida.</a><br />
On Tuesday, his government approved emergency relief measures worth 3.5 trillion yen ($24 billion) and will compile a more comprehensive stimulus package next month.<br />
&#8220;The BOJ maybe doesn&#8217;t want to upstage the government in terms of its inflation response,&#8221; Kumano, the economist, said.<br />
Haruhiko Kuroda, the bank&#8217;s governor, has said the ultra-easy policy is necessary to maintain momentum toward its 2% inflation target.<br />
In August, Japan&#8217;s headline consumer inflation stood at 2.8%, exceeding the BOJ&#8217;s target for a fifth straight month. But when volatile food and energy prices are stripped out, inflation stood at 1.6%, which the central bank considers insufficient for achieving sustained inflation.</p>
<p><strong>Source: Nikkei</strong></p>

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