The Bank of Japan shocks markets with a negative interest rates surprise. Julian Sattherthwaite reports.
In Japan it now costs money to leave cash in your current account. At least it does if you're a financial institution trying to leave money with the central bank. The Bank of Japan stunning markets with a move to negative interest rates. That just a week after governor Haruhiko Kuroda ruled out any such move. He was overruled in a 5 to 4 vote by BOJ policymakers. They opted to charge point one percent interest on accounts held with the bank by financial institutions. The move intended to spur inflation by forcing lenders to put their cash into circulation, rather than socking it away. It's a policy pioneered by the European Central Bank in 2014. And it seems to be getting a welcome from investors. Asian shares jumping in the wake of the move.