What makes you think the BoJ will ever reverse this trend (long term)?
Japan has had negative real interest rates for 31 years...
31 years and they still haven’t figured out a way forward. We are all in the same mess, Japan’s situation is just ahead of us. I think their situation is our future. A stagnant economy of zombie companies, a government & central bank playing endless games to avoid collapse and crisis. They will keep this going as long as possible.
I hope they do, it would be an instruction manual for us all, but each decade that passes dims my hope.
We are in opposite situations.
Japan has been fighting deflation for decades. The U.S. deployed massive stimulus to fight deflation and is now raising rates and cutting the budget deficit to fight the resulting inflation.