ZIRP, DERP, they've gone NIRP!
Japan Goes All Japanesa after 5th Recession Since 2008
Japan Turning Japanese - I Really Sink So
The Bank of Japan lowered interest rates Friday. After years of ZIRP, DERP, they've gone NIRP!
“Abenomics” - put in place three years ago - included 'unprecedented' Quantitative Easing, vigourous fiscal policy, and structural reforms. It was sold as the model with which mature economies battling deflation would be able free themselves of the morass.
Alas, Abenomics has shown to be not enough, and Japan is now arguably falling into its fifth or six recession since 2008, alone, depending on how one's counting. Japanese inflation has been nil, and household spending, the bulk of their GDP, has dropped over 4% since 2014. Yeah, that might be a touch recessionary.
Most recently, household spending has fallen 4.4% in the year to December, and factory output fell 1.4% in December, much worse than the market forecast of a 0.3% retreat.
Do Not Fear! NIRP is Here!
CNBC: Bank of Japan adopts negative interest rate policy
The Bank of Japan blindsided global financial markets Friday by adopting negative interest rates for the first time ever,
buckling under pressure to revive growth in the world's third-largest economy...
The BOJ left its program to buy government bonds and exchange traded funds (ETFs) unchanged.
The central bank noted that the Japanese economy has recovered modestly with underlying inflation picking up, along with spending by companies and households.
