Latest Bank of Japan Financial System Report now published 22 April
- BOJ watching the risk of lending pullback due to negative rates
Adds a little more credence to the earlier negative-rate loan talk
- financial institutions have the strength to continue taking on risks even as BOJ's neg rate policy weighs on profits
- QQE with neg rates has helped smooth functioning of financial system by lowering deposit, loan rates
- signs of holdup in flow of funds have been observed, inc some indicators pointing to reduced market liquidity
- heightened global volatility has led to stock price declines, yen rises that worked to restrain risk taking somewhat
Meanwhile USDJPY paring earlier gains and back down to 110.47 with yen pairs also in retreat dragging core pairs lower.
