Analysis:Japanese savers have rediscovered interest rates and banks are feeling it
Japanese savers are rediscovering interest rates and banks are feeling the impact, as government bond yields now offer significantly higher returns compared to traditional bank deposits. The Bank of Japan's recent victory in its 14-year battle to lift inflation to its 2 per cent target has led to a shift in household investment behavior, with more people opting for government bonds over bank deposits.
This shift is still modest, but policymakers hope it will grow, as households could play a bigger role in funding Japan's massive budget and help fill the gap left by the BOJ's diminishing government bond purchases.
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Also reported by 2 other outlets
- Analysis:Japanese savers have rediscovered interest rates and banks are feeling it channelnewsasia.com
- Japanese savers move money out of banks as bonds prove more attractive businesstimes.com.sg