Lemanik

13-12-2017

Japan's ultra-low rates could hurt banks' business, economists say

Economists fear that the Bank of Japan’s ultra-low interest rates could hurt banks’ ability to do business if they are kept too long. BOJ Governor Haruhiko Kuroda flagged this possibility when he referred in November to a “reversal rate,” or the level where central bank rate cuts can hurt the economy by squeezing banks’ lending margins to a level where they lose interest in making loans. REUTERS