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Japanese pension fund shouldering costs of BOJ's negative rate

Central bank's deposit fee squeezes bank handling GPIF assets

The impact of the BOJ's negative interest policy has reached the Government Pension Investment Fund.

TOKYO -- Japan's Government Pension Investment Fund has decided to pay the interest on deposits mandated by the Bank of Japan's negative rate policy, taking the weight off an overextended intermediary bank.

As the world's biggest pension fund, the GPIF currently uses Trust & Custody Services Bank, part of the Mizuho Financial Group, to handle its deposits. Those short-term assets topped 10 trillion yen ($88.8 billion) at the end of September, up 7 trillion yen from a year earlier.

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