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Oct 1, 2014

Bank of Japan to weigh taking bleaker view on Japan output: sources

TOKYO (Reuters) – The Bank of Japan (BOJ) is likely to offer a bleaker view on factory output at its rate review next week, people familiar with its thinking said, on growing signs that the pain from a sales tax increase in April is denting a fragile recovery.

The BOJ’s nine-member board may also debate revising down its overall assessment of the economy, although this will be a close call with near-consensus among the policymakers that as a trend, a positive economic cycle remains intact.

Oct 1, 2014

BOJ to weigh taking bleaker view on Japan output – sources

TOKYO (Reuters) – The Bank of Japan is likely to offer a bleaker view on factory output at its rate review next week, people familiar with its thinking said, on growing signs that the pain from a sales tax hike in April is denting a fragile economic recovery.

The BOJ’s nine-member board may also debate revising down its overall assessment of the economy, although this will be a close call with near-consensus among the policymakers that as a trend, a positive economic cycle remains intact.

Oct 1, 2014

Japan firms fail to shake off tax-hike gloom, blunting economic rebound

TOKYO (Reuters) – Big Japanese manufacturers were slightly more optimistic in the third quarter but service-sector sentiment worsened, a central bank survey showed, adding to signs that a solid economic pickup will remain elusive without another burst of stimulus.

As the weak yen lifted exporters’ mood, big companies raised capital expenditure plans and saw job markets tightening the most since 2008, the Bank of Japan’s “tankan” survey showed, offsetting some of the gloom from recent data showing an April tax hike is threatening Tokyo’s efforts to reinflate the economy.

Oct 1, 2014

Japan business sentiment for manufacturers improves in third quarter: BOJ tankan

TOKYO (Reuters) – Japanese business confidence among manufacturers improved for the first time in two quarters in the three months to September, a central bank survey showed, an encouraging sign that parts of the economy are stabilizing.

However, sentiment for the services sector worsened more than expected, suggesting some companies are still struggling to shake off the impact of a sales tax hike in April.

Sep 29, 2014

BOJ chief says easy policy affects financial stability

TOKYO, Sept 29 (Reuters) – The head of the Bank of Japan
said on Monday that monetary policy has a substantial impact not
only on prices but also on financial system stability by
affecting various asset prices.

“Investment in high-risk assets such as high-yield bonds and
emerging economies’ bonds and stocks has been expanding
considerably against a backdrop of declining volatility in
interest rates, stock prices, and foreign exchange rates, as
well as investors’ search for yields,” Haruhiko Kuroda said in a
speech to the International Bankers Association of Japan.

Sep 19, 2014

US Treasury’s Lew calls for euro zone, Japan to do more on growth

CAIRNS, Australia, Sept 19 (Reuters) – U.S. Treasury
Secretary Jack Lew on Friday called on the euro zone and Japan
to do more to spur growth as the global economy continues to
disappoint, highlighting what is sure to be a bone of contention
as Group of 20 ministers gather in Australia.

While lauding the strength of the U.S. economy, Lew said
more work was needed to achieve faster and more balanced
economic growth and to boost demand.

Sep 19, 2014

BOJ’s Kuroda sees no problem with current FX moves

CAIRNS Australia (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Friday he saw no problem with recent currency moves as the dollar scaled a six-year high versus the yen due to growing expectations for higher interest rates in the United States.

Kuroda declined, however, to comment on whether yen weakness was good for Japan’s economy or whether the yen’s fall was too rapid, which is a slight shift in tone from his statements in recent weeks that Japan would benefit from a weaker currency.

Sep 16, 2014

Japan’s negative yields show BOJ’s limits, as easing expectations rise

TOKYO, Sept 17 (Reuters) – The Bank of Japan has begun
paying banks for the privilege of lending them cash in a sign
the central bank is reaching the limits of its power to reflate
the economy, although it may soon be forced to pump yet more
money into the financial system.

Negative yields are more than a footnote in the BOJ’s
unprecedented “quantitative and qualitative easing” (QQE)
policy. They show that Governor Haruhiko Kuroda’s 18-month-old
monetary experiment is struggling barely halfway to its 2
percent inflation goal.

Sep 16, 2014

BOJ’s Kuroda says stable yen key for Japan businesses

OSAKA, Japan, Sept 16 (Reuters) – Bank of Japan Governor
Haruhiko Kuroda said stable yen moves are crucial for the
country’s business sector, nodding to complaints from some
companies that rising import costs from sharp yen declines were
starting to hurt their bottom line.

But he stressed that the reversal of past “excessive” yen
gains is prompting some Japanese companies to boost domestic
investment instead of shifting production overseas, suggesting
that he still broadly sees yen weakness as a welcome trend.

Sep 11, 2014

BOJ’s Kuroda says tools available but no plan to ease now

TOKYO, Sept 11 (Reuters) – Bank of Japan Governor Haruhiko
Kuroda said it has tools available if it were to ease monetary
policy further, but stressed that he saw no need to act now
given steady progress toward meeting its price target.

“I don’t think there are limits to what additional steps we
can take,” Kuroda told a television programme on Thursday, when
asked whether the BOJ had deployed all available options when it
launched its massive stimulus programme in April last year.