Negative Rate Policy To Help Boost Investment: Boj Deputy Chief

Negative rate policy to help boost investment: BOJ deputy chiefThe negative interest rate policy recently launched by the Bank of Japan will "accelerate the process of overcoming deflation" by increasing business and housing investment, BOJ Deputy Governor Hiroshi Nakaso said Thursday.

Though low interest rates are feared to erode profits at financial institutions, increasing private demand "could be a quicker way to get out of the low interest rate quagmire" and turn around business conditions for those institutions, he said.

"Financial institutions may want to properly consider this point, and we do hope they will proactively explore potential borrowing needs, thereby creating new business opportunities," Nakaso said in his speech in Naha, Okinawa Prefecture.