2016年1月30日土曜日

The BOJ adopts negative rate

Bank of Japan adopts negative interest on Friday.
What's " negative interest rate"?

It's saying "By lowering borrowing costs, the central bank is hoping that consumers will spend more and stimulate inflation, or rising prices."

Do you understand?
What's negative rate?


9 件のコメント:

  1. It's difficult for me to understand negative interest rate.
    If the bank deposit to the bank of Japan,the bank has to pay interest to the bank of Japan. So the bank does not deposit to the bank of Japan. The bank would like to lend to company. Then the company will do plant investment. And business will be good. The profit of the company will return to an office worker.
    I understood it.

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    1. Oh...you understand what the economy is going. But I'm not sure what will work for us.
      For example the low price of gas is beneficial for us but for other oil companies have little profit.
      We need good balance and steady economy in our daily life not so rapid change.

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  2. I think so, too. So half of council members are against that plan.

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  3. I knew this news by reading a newspaper report in this morning.
    According to the newspaper report, it is said negative interest rate of the Bank of Japan is aimed at boosting a economic recovery and warding off deflation by giving a positive influence on investment and consumption.
    However, in the other hand, it is said there seems to be the concern of the side effect for economy, too.
    I do not understand it well about the right or wrong of this policy, but expect it to an active policy of Bank of Japan than the gradual decline by the lack of policy.

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    1. Well...stock market recently is like roller coaster and gambling casino.
      It's very risky and dangerous. So I don't want government to put our money into the insecure market.

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  4. It's better than that the bank lend money to companies than the deposit in the Bank of Japan.
    Will it go well?
    I think that "アベノミクス”is not good circulation.

    By the way,
    I talked about the old age with friends again in the morning.
    Today's conclusion is "To think about old age is that it thought of as how to live now".
    we talked happily together and drank tea.

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    1. We're given life and let be shared time in the world.
      There are no border, no difference between life nor rich or poor....thoughts a lot about living freely and happy.

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  5. John Muir's explanation is perfect .
    Jen, Don't you think so?
    The night got late. It doesn't need your answer.

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