Nikkei 225 · September 8, 1995

The day rates went to half a percent

+3.74%

single-day change vs previous close

Part of a longer stretch

The year the rescue bought

early in it · 1995-07-03 → 1996-06-26, +56.48% over the whole period

What happened that day?

On 8 September 1995 the Nikkei 225 rose 3.74%
The Bank of Japan cut its discount rate to half a percent that day — a record low at the time
The rate had been six percent in August 1990. Five years had taken it here
On the same day the government announced measures for the banks' bad loans and for the economy
There was almost no room to cut further. From here Japanese policy had to look for tools other than the interest rate
That half a percent effectively stayed in place for more than a decade
The dip before it was only 5.16% from the peak

Sources

Bank of Japan
Lost Decades

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.