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Bank of Japan's 'deeper' negative rates would hit consumers

Banks expected to charge deposit fees to manage accounts

Bank of Japan Gov. Haruhiko Kuroda told Nikkei that cutting interest rates is "always an option" for dealing with a downturn. (Photo by Wataru Ito)

TOKYO -- The Bank of Japan has signaled that it could send rates deeper into negative territory, a move that threatens to trickle down to businesses and consumers if struggling banks respond by imposing their own "negative rates" through account fees.

Gov. Haruhiko Kuroda suggested in a Thursday interview with Nikkei that lowering the central bank's policy rate beyond the current level of minus 0.1% is "always an option" in the event of an economic turn for the worse.

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