treatment of negative interest rate income, which is often not symmetric with the treatment of positive interest rate income. in addition, some it systems may not be able to cope with negative rates. in the euro area, however, these scenarios have not yet materialised. thanks to intensive technical cooperation between the ecb and market participants ahead of the introduction of negative rates, our experience has been very smooth, allowing large parts of the government bond and secured and unsecured money markets to operate at negative rates without any disruption. 13 the introduction of negative rates has been smooth also in other jurisdictions outside of the euro area. 14 on money illusion, see shafir e., p. diamond and a. tversky, “ money illusion ”, the quarterly journal of economics, vol. 112, issue 2, 1997, pp. 341 – 374. on the interaction between negative rates and money illusion, see borio c. and a. zabai, 2016 “ unconventional monetary policies : a re - appraisal ”, bis working paper no 570, 2016. “ imagine a world in which tax offices harry people who file their returns promptly ; where big supermarket chains pay their suppliers before the goods fly off the shelves and not months afterwards ; and where a prepaid annual gym membership is more costly than paying month by month. it sounds fanciful, absurd even. ”, in the economist, op. cit. see deutsche bundesbank, “ nothing new about real interest rates on deposits ”, 30 june 2014, https : / / www. bundesbank. de / redaktion / en / topics / 2014 / 2014 _ 06 _ 30 _ nothing _ new _ negative _ interest _ rates. ht ml. see european central bank, “ low interest rates and households net interest income ”, ecb economic bulletin, issue 4 / 2016, box 3. see mcandrews j., “ negative nominal central bank policy rates : where is the lower bound? ”, remarks at the university of wisconsin, 8 may 2015. for example, some financial contracts ( e. g. money market funds or floating rate notes ) may not foresee the possibility of payments from the lender to the borrower and in any case the logistics of collecting interest payments from holders of securities can be complex. see cœure b., “ life below zero : learning about negative interest rates ”, presentation at the annual dinner of the ecb ’ s money market contact group,

stable manner toward the end of the projection period of the january 2024 outlook report. it considers that its large - scale monetary easing measures have fulfilled their roles, including the negative interest rate policy and the yield curve control. with the price stability target, the bank will conduct monetary policy as appropriate, guiding the short - term interest rate as a primary policy tool, in response to developments in economic activity and prices as well as financial conditions from the perspective of sustainable and stable achievement of the target. given the current outlook for economic activity and prices, it anticipates that accommodative financial conditions will be maintained for the time being. short - term interest rate ( uncollateralized overnight call rate ) 0. 3 % long - term interest rates < after > < before > 0. 2 0. 1 ( guideline for market operations ) - 0. 1 - 0. 2 - 0. 3 rate on the policy - rate balances ( - 0. 1 % ) upper bound for 10 - year jgb yields as a reference 1. 0 around 0. 1 % increase 0. 0 < after > < before > % rate on the current account balances ( + 0. 1 % ) in the case of a rapid rise in long - term interest rates, the bank will make nimble responses, such as increasing the amount of jgb purchases the bank will continue its jgb purchases with broadly the same amount as before 0. 0 the bank will encourage the rate to remain at around 0 to 0. 1 % target level of 10 - year jgb yields ( around 0 percent ) march mpm march mpm ( the rate had been in the range of - 0. 1 to 0 % ) etfs and j - reits the bank will discontinue purchases specifically, the bank has set the uncollateralized overnight call rate as the policy interest rate and will encourage that rate to remain at around 0 to 0. 1 percent by applying an interest rate of 0. 1 percent to current account balances held by financial institutions at the bank. this means that the interest rate level will increase by around 0. 1 percentage point, given that the rate was in the range of minus 0. 1 to 0 percent before the policy change. the bank has removed the target level of long - term yields and the upper bound for these yields as a reference on japanese government bonds ( jgbs ), both of which were set to control interest rates. the