The Bank of Japan kicked off a two-day policy meeting Monday to examine the effects of its surprise January decision to adopt a negative interest rate.
BOJ policymakers are expected to discuss financial developments since the nine-member board voted in favor of imposing a 0.1 percent charge on part of the reserves that financial institutions hold at the central bank.
Since the introduction of the negative interest policy, some banks have cut mortgage rates and deposit rates, while lender shares took a hit. The yield on 10-year Japanese government bonds has entered negative territory.