Japan’s central bank unexpectedly introduced a negative interest rate Friday for some deposits that it holds for the country’s commercial banks. The bank said that setting the rate at minus 0.1 percent was needed to stimulate the economy. Pro Farmer’s First Thing Today reports Asian and European equities surged on the announcement. Japanese benchmark 10-yields plunged to a record low while the yen is heading for its biggest decline in more than a year. The Bank of Japan is now the second major central bank to set negative interest rates, joining the European Central Bank. The central banks of Sweden, Denmark and Switzerland also have negative interest-rate policies. Pro Farmer says the move could increase pressure on the U.S. Federal Reserve to hold back on raising interest rates and accelerate more easing by the European Central Bank.
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