Introduction of negative interest to Counter ongoing economic slump in Japan

In an unexpected  move, the Bank of Japan has introduced negative interest rates to counter the ongoing economic slump.

The central bank will in fact charge the rate of -0.1%  money for holding deposits.

The central bank hopes the easing of monetary policy will drive up inflation and boost economic growth.

It’s a policy that usually  affects inter bank lending only and won’t affect  the average banking client.

The decision came after the bank’s first meeting of the year on Friday.