Leika's Feed
Apr 22, 2015

BOJ to cut this fiscal year’s CPI forecast, keep upbeat outlook-sources

TOKYO (Reuters) – The Bank of Japan is likely to cut its inflation outlook for the current fiscal year next week, but will forecast price growth to roughly reach 2 percent in the following two years, sources said, underscoring the BOJ’s conviction that a steady recovery will keep the economy on track to hit the target.

Many BOJ policymakers prefer to hold off on further easing at the April 30 rate review, when they issue new long-term projections that will underline their optimism on the recovery and prospects for hitting their 2 percent inflation target, said sources familiar with the central bank’s thinking.The BOJ board members will carefully scrutinize risks before reaching a final decision, though it will take a very big cut in this fiscal year’s inflation forecast to trigger action, they noted.

Apr 21, 2015

Japan’s Abe picks Toyota adviser to tip BOJ board in favor of stimulus

TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe nominated a former Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) executive to join the Bank of Japan’s split policymaking board, shifting the balance in favor of Governor Haruhiko Kuroda’s radical stimulus approach.

Yukitoshi Funo, a 68-year-old adviser to the auto giant, would replace Yoshihisa Morimoto, a former utility executive who voted against last October’s surprise monetary easing, when his five-year term expires at the end of June.

Apr 18, 2015

Fiscal target delay would pressure Japan debt rating: Moody’s

WASHINGTON (Reuters) – Japan’s sovereign debt rating will come under downward pressure if its government falls behind on its goal of achieving a primary budget surplus in fiscal 2020, Tom Byrne, senior vice president of Moody’s Investors Service, said on Saturday.

The budget target has become increasingly difficult to achieve with Prime Minister Shinzo Abe having delayed a second sales tax hike last year, after the first increase nudged Japan into recession.

Apr 18, 2015

IMF warns clear fiscal reform plan key to success of BOJ’s stimulus

WASHINGTON (Reuters) – Japan must come up with and implement a clear, specific plan to cut its huge debt pile in order to make its monetary stimulus effective, the IMF’s mission chief for the country said, warning Tokyo against loosening its grip on fiscal consolidation.

Prime Minister Shinzo Abe put off a sales tax hike last year and has been slow in pushing through painful spending cuts, arguing that Japan should focus more on boosting tax revenues by reflating the economy with stimulus.

Apr 17, 2015

World Bank should join China-led bank in syndicated loans – Japan

WASHINGTON, April 16 (Reuters) – The United States and Japan
want the World Bank and Asian Development Bank (ADB) to team up
with a new Chinese-led development bank in syndicated loans, as
a way of helping the new lender establish strong standards,
Japan’s finance minister said.

Washington and Tokyo are leading members of the World Bank
and ADB, respectively, and have been wary of joining China’s new
Asian Infrastructure Investment Bank (AIIB), with U.S. officials
in particular voicing concern over its lending standards.

Apr 15, 2015

OECD says BOJ has done enough, warns of QQE risks

TOKYO (Reuters) – Japan must be mindful of the risks of its massive monetary stimulus and speed up much-needed structural reforms to revive the economy, the OECD said on Wednesday, warning of delays in their implementation.

Prime Minister Shinzo Abe’s policies to revive the economy have been dubbed ‘Abenomics’, and the OECD report pointed to the mixed results of a strategy dependent on “three arrows” – massive monetary expansion, fiscal stimulus and structual reform.

Apr 15, 2015

BOJ must maintain stimulus but with eye on risks – OECD

TOKYO (Reuters) – The Bank of Japan must continue buying assets aggressively to sustainably achieve its 2 percent inflation target, while keeping an eye on risks, such as disrupting the bond market and fuelling asset bubbles, the OECD said on Wednesday.

The global think tank also warned that without a credible plan to rein in its huge public debt, Japan may face a bond market sell-off that could hit banks with huge bond holdings.

Apr 15, 2015

Bank of Japan must maintain stimulus but with eye on risks: OECD

TOKYO (Reuters) – The Bank of Japan must continue buying assets aggressively to sustainably achieve its 2 percent inflation target, while keeping an eye on risks, such as disrupting the bond market and fuelling asset bubbles, the OECD said on Wednesday.

The global think tank also warned that without a credible plan to rein in its huge public debt, Japan may face a bond market sell-off that could hit banks with huge bond holdings.

Apr 13, 2015

BOJ sees economy improving region by region, keeps upbeat view

TOKYO (Reuters) – The Bank of Japan raised its economic assessment for three of Japan’s nine regions in a quarterly report on Monday, signaling that the benefits of its stimulus program was broadening.

The central bank kept intact its optimistic assessment for the remaining six regions, stressing that solid demand at home and overseas are underpinning output and the job market.

Apr 10, 2015

Exclusive – BOJ’s Nakaso warns market against betting on more easing

TOKYO (Reuters) – Bank of Japan Deputy Governor Hiroshi Nakaso has tempered market expectations that the bank will expand its stimulus program later this month, saying a cut in its inflation forecast would not be enough to justify more monetary easing.

Nakaso, one of Governor Haruhiko Kuroda’s two deputies, said that while slumping oil costs have pushed inflation back to zero, rising wages and a steady economic recovery will underpin a long-term rise in prices.