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Japan PM adviser appreciates BOJ's negative rates

The evident benefits of the BOJ’s negative interest rate policy turn to be big enough because it’s simply encouraging corporate debt issuance and bringing mortgage rates down, as an adviser to Prime Minister Shinzo Abe, Yasutoshi Nishimura informed on Friday.

The policy has weighed on bank revenues in the short term, though it should be a profit in the long term. It’s because negative rates might generate more capital expenditure and also boost consumer spending, the advisor told Reuters in his interview.

Besides this the advisor’s comments suggest the Japanese authorities would be open to a further drop in negative rates as a way to obtain more money flowing through the national economy and also prevent a return to deflation.

A ruling Liberal Democratic Party lawmaker  as well as a former ministry official, Nishimura stressed that there’re both positive and negative aspects in negative rates, though he thinks that the positive aspects prevail. 

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