Doubts have grown in the wake of the Bank of Japan reducing its interest rate into negative territory in a bid to encourage funds to flow into the economy, based on recent data.
This drastic measure came as part of its reflationary efforts and to shore up the economy, which, if it contracts in the current quarter will mark a technical recession.
Additionally, the financial institute has revealed that it may further lower its interest rate, in moves similar to the European Central Bank, as deflationary pressure emerges.
Furthermore, with intensifying economic pressures on the Japan potentially being influenced by the U.S. Federal Reserve holding fire on a subsequent rate hike, the reduction seems imminent.
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