With speculation simmering about how high the Bank of Japan will raise interest rates and how quickly, newly released transcripts from a decade ago show the depth of division within the central bank ahead of its controversial decision to adopt a negative policy rate, a move that marked the lowest point for borrowing costs.
Policymakers voted to cut the policy rate to minus 0.1% in a 5-4 vote. The verbatim record of that January 2016 meeting, released Wednesday under the BOJ¡¯s 10-year disclosure rule, shows policymakers engaged in a heated debate before approving the negative rate.
At the time, the BOJ was already pursuing an unprecedented program of quantitative and qualitative monetary easing. The surprise decision upended stocks and sent the yen higher against the dollar ¡ª an unusual market reaction to additional monetary stimulus.
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