BANK OF JAPAN DRIVES RATES BELOW ZERO (STA BREAKING NEWS and ARCHIVES)

by STANews , Wednesday, September 10, 2014, 12:49

The Bank of Japan has pushed a short-term interest rate below zero in a dramatic step in its already unprecedented efforts to stoke inflation.

The BOJ bought three-month bills for more than their redemption value this week, according totraders, essentially paying to lend money to the market.

The central bank's first purchase at a yield less than zero underscores its determination to pay any price to help reflate Japan's ailing economy.

BOJ officials would not confirm the negative-yield purchases, which were part of a market operation that bought ¥500bn of short-term bills, on the grounds they could not disclose individual transactions. But the bank was clearly untroubled by the idea of crossing this line.

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http://www.theguardian.com/business/2014/sep/10/bank-of-japan-interest-rates-zero