Home BOJ’s Suzuki: Keeping rates very low could have unusual effects, side-effects on economy
FXStreet News

BOJ’s Suzuki: Keeping rates very low could have unusual effects, side-effects on economy

The Bank of Japan (BOJ) board member Suzuki is out on the wires now, via Reuters, making a scheduled speech, with the key headlines found below.

Keeping rates very low could have unusual effects, side-effects on economy.

Changes in economy, credit cycle could increase credit costs for financial institutions.

 financial institutions’ profits, business health are getting more vulnerable to domestic, overseas market developments.

When interest rates are too low, they narrow financial institutions’ margin and lead to decrease in bank lending.

If lending rates fall further, financial institutions could start charging fee on deposits which could cool consumption, economy.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.