Money fled that money-losing proposition to unofficial lenders paying higher rates for deposits because they were charging, not the official 6.5% rate for a loan, but 30% to 70%.
Until deflationary Japan sees consumer prices rise by between 0% and 2% a year (with an unofficial aim of 1%), the long-standing near-zero policy rate will remain.
Until deflationary Japan sees consumer prices rise between 0% and 2% (with an unofficial aim of 1%), the near-zero policy rate will remain (as it has done for ages).