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Apr 17, 2014

BOJ keeps upbeat view on regional Japan, sees limited tax hike impact

TOKYO, April 17 (Reuters) – The Bank of Japan maintained its
upbeat view on most of the country’s regional economies, adding
to reassurances from its governor that the world’s third-largest
economy can ride out the pain from a sales tax hike without
additional stimulus.

Also on Thursday, a Reuters survey showed manufacturers were
more confident about business conditions in April and saw a more
moderate dip over the next three months, suggesting the damage
from the tax hike may be less pronounced than thought.

Apr 16, 2014

BOJ Kuroda maintains positive view on economy

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda on Wednesday affirmed its upbeat view of the economy, even as global financial markets wobble, stressing that growth will pick up around mid-year as the sting of a sales tax hike fades.

Price rises will broaden as the economy continues gradually to improve, Kuroda added, reiterating his view that Japan is making headway towards the central bank’s price goal of 2 percent inflation in about a year’s time.

Apr 13, 2014

Poland c.bank ‘preparing’ not ‘planning’ to use unconventional policies

WASHINGTON, April 13 (Reuters) – Poland’s central bank is
“preparing” to possibly use unconventional policy instruments if
need be, but not “planning” on it, its governor said on Sunday.

Marek Belka, speaking at an International Monetary Fund
event in Washington, said the instruments could be used to
intervene in different asset classes. Referring to
macroprudential policymaking, he said Poland needed to “brace
ourselves for the unthinkable.”

Apr 11, 2014

Japan urges G20 cooperation to ease geopolitical risks

WASHINGTON (Reuters) – Japan urged G20 countries to work closely together to alleviate geo-political uncertainties over Ukraine that may hurt global growth, Finance Minister Taro Aso said on Thursday.

Speaking to reporters after a G20 dinner session, Aso said he told counterparts that Japan welcomed efforts by the International Monetary Fund to quickly offer aid to Ukraine.

Apr 10, 2014

IMF says ECB must expand balance sheet, QE isn’t only option

WASHINGTON (Reuters) – The European Central Bank should expand its balance sheet further to stave off the risk of deflation, but options aren’t limited to quantitative easing-style purchases of government bonds, a senior International Monetary Fund official said.

Boosting liquidity provision to banks or buying private sector assets like asset-backed securities – even if the pool for them is small in Europe – can also help the region deal with dangerously low inflation, said Mahmood Pradhan, deputy director of the IMF’s European department.

Apr 10, 2014

IMF Shinohara: Tighter funding may weigh on Asian growth

WASHINGTON (Reuters) – Emerging Asian nations are seeing financial conditions tighten more than expected as the U.S. Federal Reserve tapers its massive stimulus, which may weigh on the region’s economic growth, a senior International Monetary Fund official said.

But the chance of a huge capital outflow from Asia is slim even as the Fed eyes raising interest rates in the future, said IMF Deputy Managing Director Naoyuki Shinohara.

Apr 10, 2014

BOJ to project inflation to sustain near price goal for two years: sources

TOKYO (Reuters) – The Japanese economy is likely to produce sustained inflation of around 2 percent for at least two years from the middle of 2015, the Bank of Japan’s latest projections will show, sources familiar with the central bank’s thinking said.

The upbeat estimate would underscore the central bank’s conviction that Japan is on track to meet its 2 percent price goal by April next year, and reinforce the view that no imminent easing is on the horizon.

Apr 8, 2014

BOJ’s Kuroda dismisses need for additional stimulus

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said there was no need for additional stimulus to escape years of debilating deflation, expressing confidence on Tuesday the world’s third-largest economy can ride out the impact of a sales tax rise.

Kuroda dismissed market expectations the BOJ could ease again soon to soften the blow from the tax rise that took effect of April 1, stressing a short-term disruption was unlikely to derail a steady recovery already underway.

Apr 8, 2014

BOJ stands pat, keeps upbeat view despite Japan slowdown

TOKYO (Reuters) – The Bank of Japan stuck to its existing monetary stimulus on Tuesday, confident that it did not need further support measures to beat chronic deflation even as a sales tax hike clouds the outlook for the world’s third-largest economy.

The central bank maintained its upbeat view on the economic outlook and affirmed its conviction that Japan is on track to meet its 2 percent inflation target by around April next year, signaling that no further easing was on its near-term horizon.

Apr 7, 2014

BOJ seen upbeat despite Japan slowdown, market clamor for easing

TOKYO (Reuters) – The Bank of Japan is expected to hold off on expanding stimulus on Tuesday, holding fast to existing plans to beat chronic deflation even as a sales tax hike clouds the outlook for the world’s third-largest economy.

Unfazed by recent signs of weakness in the economy, the central bank is set to maintain its current monetary policy settings at a two-day meeting ending on Tuesday, and affirm its conviction that the economy is on track to meet the target of 2 percent inflation within a year or so.