Three months after Japan unveiled NIRP, the effect has finally arrived. As IB warns its FX traders, starting Monday, Interactive Brokers “will move to a credit interest policy which allows for negative rates on long cash balances held in JPY where accounts with balances over approximately 100 thousand USD will be subject to the current Benchmark Rate minus 0.25%.” Why? Because while initially the negative interest rate policies unveiled by “many central banks were viewed as short-term measures, they now appear to be policies with open-ended duration.“
These NIRP costs are now being passed on to FX traders, and very soon, to depositors.
via http://ift.tt/24dcOqs Tyler Durden