Analysts say the BoJ's negative interest rate policy failed to boost the economy
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This view highlights that the central bank is facing more and more challenges when reaching the 2% inflation target. Over the years, the ultra loose monetary policy and near zero interest rate have achieved only a few results, but paid the price of squeezing the profit rate of financial institutions.
So most of the analysts surveyed expect the Bank of Japan's next move to scale back its massive stimulus measures, perhaps sometime next year.
The survey also showed that criticism of controversial policies has spread beyond Europe. Switzerland and other European countries are facing increasing pressure and need to adjust ultra loose policy to deal with the defects of negative interest rate policy.
In a Reuters poll of 41 analysts on January 6-17, 24 said the BoJ's negative interest rate policy was not conducive to the economy and prices; 17 said it was helpful.
"Negative interest rates may have some positive effects on the financial and real estate markets. But there are also big side effects such as hitting bank profits, "said Xiong Guliang pill, chief analyst of Daiwa research.
On the whole, we don't think it has much positive effect on Japan's economy and prices, he said.
28 of 42 analysts (67%) expect the BoJ to withdraw stimulus next, up from 61% in December, according to a Reuters survey. Those who predict such actions will say they may happen sometime or later next year.
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