Leika's Feed
Jul 31, 2015

Japan June inflation stalls as household spending falls

TOKYO (Reuters) – Japan’s annual core consumer inflation stalled and household spending unexpectedly fell in June, underscoring the challenges the central bank faces in reflating the economy to meet its ambitious 2 percent price target.

Friday’s soft indicators reinforce views the economy probably slowed sharply in April-June from the prior quarter, with some analysts expecting to see a contraction when the GDP data is published on August 17.

Jul 30, 2015

Japan June inflation stalls, spending unexpectedly falls

TOKYO (Reuters) – Japan’s annual core consumer inflation stalled and household spending unexpectedly fell in June, underscoring the challenges the central bank faces in reflating the economy to meet its ambitious 2 percent price target.

But the central bank is set to hold off on expanding monetary stimulus for now, as policymakers have repeatedly said they will look through the effect of last year’s oil rout that is mainly behind the slowdown in inflation.

Jul 30, 2015

BOJ’s Ishida warns of stimulus costs, future imbalances

KYOTO, Japan (Reuters) – The Bank of Japan must be vigilant to the risk its massive stimulus program could overheat the economy and create financial imbalances, board member Koji Ishida said on Thursday.

The former banking executive said he saw no immediate signs the central bank’s aggressive money printing was sowing the seeds of an asset bubble, and that such risks were something to worry about in the long-term.

Jul 29, 2015

Japan annual retail sales rise modestly, consumption outlook murky

TOKYO (Reuters) – Japanese retail sales rose 0.9 percent in the year to June but the pace of growth slowed for a second straight month, a sign consumer spending has yet to build enough momentum to be a key driver of economic growth.

While food and beverage sales increased, bad weather during the month hurt clothing sales at department stores, government data showed on Wednesday.

Jul 28, 2015

As oil slumps, BOJ relies on yogurt, ketchup to hit price goal

TOKYO (Reuters) – Desperate to convince consumers that inflation really is picking up, the Bank of Japan is taking advantage of a gradual rise in food prices, from yogurt and ketchup to “gyudon” beef rice bowls – once a symbol of Japanese deflation.

With the main official gauge showing inflation stalling due to weak oil prices, the central bank has come up with its own index that conveniently shows inflation accelerating toward its 2 percent goal.

Jul 27, 2015

BOJ’s Nakaso warns of China slowdown impact on exports

KUMAMOTO, Japan (Reuters) – Japanese policymakers must be mindful of the potential negative impact that China’s economic slowdown could have on Japanese exports, central bank Deputy Governor Hiroshi Nakaso said on Monday.

He also warned of the risk that an expected interest rate hike by the U.S. Federal Reserve could heighten global market volatility and hurt emerging markets vulnerable to capital outflows.

Jul 23, 2015

IMF warns Japan must avoid over-reliance on weak yen

TOKYO (Reuters) – Japan must avoid overly relying on a weak yen to reflate the economy by deploying a new round of structural reforms such as steps to boost labor market participation, the International Monetary Fund said on Thursday.

The global lender also warned that while inflation is seen accelerating to about 1.5 percent over the medium term, hitting the Bank of Japan’s 2 percent target remained “challenging.”

Jul 21, 2015

BOJ soothes government concern over fewer policy meetings

TOKYO, July 21 (Reuters) – The Bank of Japan will hold fewer
policy-setting meetings from next year, having assured the
government that it will take steps to maintain smooth
communication between them, according to sources familiar with
the discussions.

The BOJ decided in June to cut the number of rate reviews
per year to eight from the current 14, in line with the
practices of the Federal Reserve and the European Central Bank.

Jul 21, 2015

Some Bank of Japan policymakers fret stimulus effects diminishing: minutes

TOKYO (Reuters) – Several Bank of Japan board members said the impact of the bank’s massive stimulus might be fading, according to minutes of its June meeting, a sign that not all shared Governor Haruhiko Kuroda’s optimism on achieving his 2 percent inflation target.

The nine-member board agreed underlying inflation, which excludes volatile food and energy prices, would continue to improve in the long term, the minutes published on Tuesday showed.

Jul 15, 2015

BOJ trims growth forecast as exports weaken, Kuroda still optimistic

TOKYO (Reuters) – The Bank of Japan trimmed its economic growth forecast on Wednesday but held off on offering fresh stimulus, convinced that an expected pick up in consumption will help accelerate inflation towards its 2 percent target.

Defying market scepticism over its rosy outlook, the central bank roughly maintained its forecasts that see inflation reaching its target in the fiscal year beginning in April 2016.