The Bank of Japan last week became the fifth central bank to impose negative rates and we now expect it to lower its deposit rate to -0.7% by the end of this year. If policy eventually needed to be loosened further, we think central banks could cut rates as far as -2% without causing major problems.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services