Title: Japan’s Negative Interest Rates Explained - The New York Times
Headings: Japan’s Negative Interest Rates Explained
Today in Business
Japan’s Negative Interest Rates Explained
What are negative interest rates?
What sort of countries have negative rates?
Rate Goes Negative
What does the Bank of Japan hope to accomplish?
Are negative rates working?
Still, people must be happy that money is cheap, right?

Content: The European Central Bank, which oversees monetary policy for countries that use the euro, introduced negative rates in 2014. Denmark, Sweden and Switzerland, which are not part of the eurozone, also have negative rates. Japan’s central bank followed in January, announcing that it would charge commercial banks a fee of 0.1 percent on a portion of their reserves that they keep with it. Rate Goes Negative - The New York Times
Rate Goes Negative
After declining for a decade, 10-year government bonds yields in Japan fell below zero this year. Yield on Japanese
10-year government bonds
+2.0
%
+1.5
+1.0
2012: Shinzo Abe is elected prime minister of Japan. +0.5
0
NEGATIVE
TERRITORY
JULY 2016
–0.18%
–0.5
’00
’05
’10
’15
+2.0
%
Yield on Japanese
10-year government bonds
+1.5
+1.0
2012: Shinzo Abe is elected prime minister of Japan. +0.5
0
JULY 2016
NEGATIVE TERRITORY
–0.18%
–0.5
’00
’05
’10
’15
What does the Bank of Japan hope to accomplish? The bank is trying to lift consumer prices, which have been sliding for most of the past 20 years.