TOKYO (Sept 19): The Bank of Japan could shift negative interest rates to the primary focus of its monetary policy on Wednesday, heightening market disquiet over what any move away from quantitative easing reveals about the waning firepower of global central banks. "Deepening negative rates has enormous costs too but practically, that's probably the only usable tool left." But the BOJ must manage any such shift without giving markets the impression it could withdraw its massive stimulus. Sources say the board may consider deepening negative rates to show its determination to maintain an ultra-easy policy bias, though analysts doubt whether a deepening could do much to boost growth. "Unless the BOJ accompanies rate cuts with increased asset purchases, it won't help weaken the yen much either."

Source: The Edge Markets September 19, 2016 10:41 UTC