Investing.com - The Bank of Japan unexpectedly cut a benchmark interest rate below zero on Friday, stunning investors with another bold move to revive the economy as volatile markets and slowing global growth threaten its efforts to beat deflation.
Asian shares jumped, the yen tumbled and sovereign bonds rallied after the BOJ said it would charge for a portion of bank reserves parked with the institution, an aggressive policy pioneered by the European Central Bank.
The central bank also said it would cut interest rates further into negative territory if necessary, in its battle against deflation.
The BoJ's move could make it even harder for the U.S. Federal Reserve to raise interest rates four times this year, as envisaged by Fed officials in December.