The Bank of Japan released the minutes of its Monetary Policy Meeting held on 28 and 29 January 2016, revealing the circumstances behind the introduction of negative interest rates, which Governor Kuroda said would "further stimulate consumption and investment and make the economy stronger." A succession of dissenting views was expressed.
The Bank of Japan released the minutes of its meeting on 28 and 29 January 2016, when it decided to introduce the highly unusual negative interest rate policy. Several members expressed concern that the large-scale monetary easing policy being pursued by Governor Haruhiko Kuroda (黒田東彦) had reached an impasse, but the governor pushed the measure through by explaining that lowering interest rates would stimulate consumption and investment and make the economy stronger.
The vote was a razor-thin result, with 5 of the 9 Policy Board members, including the governor, voting in favor and 4 voting against. Policy Board member Sato Takehiro (佐藤健裕), who opposed the measure, said it "could create the impression that policy options had run out." Policy Board member Shirai Sayuri (白井さゆり) expressed her intention to oppose the measure, citing concern that the complexity of the mechanism would cause confusion.
It was also confirmed that immediately before the meeting, Kuroda had denied in the Diet that negative interest rates would be introduced.
The release of the minutes once again highlighted the views of members at the time, both for and against the Bank of Japan's large-scale monetary easing policy.