BOJ paper: ditching negative interest rates could help push up inflation - Reuters News

A think-tank affiliated with the Bank of Japan (BOJ) has issued a paper arguing that ditching negative interest rates could help accelerate inflation, according to Reuters News.

The academic paper by Junko Koeda, a Waseda University professor who is not BOJ staff, says, " A 'liftoff,' which occurs when the net policy rate becomes positive, can be expansionary if it triggers the economy to move to a better state."

While the paper does not represent the BOJ's view, it could be interpreted by market participants as a sign the central bank is getting increasingly concerned about the rising cost of prolonged monetary easing.

The central bank introduced negative rates and introduced yield curve control in 2016 to achieve its elusive 2 percent inflation target.