Among the changes, the Bank of Japan (BOJ) said it would make yield curve control a centerpiece of its new policy framework, by a seven-to-two vote, Reuters reported. It said it would buy 10-year JGBs so that the yield would hover around zero percent, Reuters reported.
In a recent speech, Finance Minister Arun Jaitley called for lower deposit rates in the economy, saying high interest rates on savings instruments translate into higher cost of lending and lead to sluggishness in the economy.
The central bank maintained its negative 0.1 percent deposit rate and its 80 trillion yen base money target. However, it did leave the door open to additional easing steps and said it will provide loans at zero interest rates to areas impacted by the recent Kyushu earthquakes.
The ECB cuts its deposit rate deeper into negative territory, charging banks more for parking their cash, and increased monthly asset buys to 80 billion euros from 60 billion euros, exceeding expectations for an increase to 70 billion.
Speaking to CNBC-TV18, Ashish Parthasarthy, Head Treasurer of the bank says that rates are reviewed on a quarterly basis and are adjusted accordingly. The current reduction is base rate will not have much impact on the bank‘s margin, he adds.