BOJ estimates serious impact of rate cut on regional financial firms

Economy

The Bank of Japan has estimated that a further cut in short-term interest rates will reduce profits at financial institutions by several hundred billion yen, or several billion U.S. dollars, with regional banks taking a more serious hit than major banking groups, sources with knowledge of the matter said Monday. The internal calculations were made when the BOJ conducted a review of its policy tools in March to make monetary easing more effective and sustainable. The Japanese central bank considered a scenario in which short-term interest rates, currently at minus 0.1 percent, were cut to minus...

Kyodo News

Kyodo News