Is it a good time to invest in the Yen? What do negative interest rates mean?
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Abbreviated Question:
Is it a good time to invest in the Yen? What do negative interest rates mean?
Answer:
first part:
It appears from the news analysis that Yen has appreciated too quickly against dollars and policymakers are concerned. Implicitly, yen appears to be overvalued in the short run. It is never a good idea to invest in a currency that is expected to depreciate, i.e., lose value.
second part:
Yes, negative interest rate broadly means that lenders give more to get less. Negative interest rates are usually a result of too much liquidity in the financial system. A contractionary monetary policy reduces liquidity and raises interest rates.