BOJ’s negative rates drive Japanese lending rates to record low

On Wednesday, Reuters reported the data released by Bank of Japan (BOJ), which showed the Japanese lending rates hit a record low in February, and highlighted its negative impact on the commercial banks' profit margins. With effect from last month, the BOJ negative interest rates policy was applied.

The BOJ data showed, the average lending rate for the balance of loans made by domestic banks stood at 1.098% in Feb, extending a record low for a fourth straight month. The rate for new loans extended last month, when the BOJ began applying negative interest rates, stood at 0.793%, extending a record low for the first time in nine months.