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Oct 21, 2014

Quiet critic of Kuroda’s ‘monetary shamanism’ turns up the volume

TOKYO (Reuters) – Izuru Kato is a soft-spoken and bookish economist, but his dismissal of the Bank of Japan’s stimulus policy as “monetary shamanism” is ringing loud in the ears of bank Governor Haruhiko Kuroda.

Kuroda’s policy of quantitative and qualitative easing (QQE) – increasing the money the bank supplies to the financial system by buying high-quality assets – is aimed at lowering real interest rates, pushing up inflation and stimulating private demand to revive an economy that has stagnated for two decades.

Oct 20, 2014

BOJ stays upbeat on regional Japan, Kuroda says recovery on track

TOKYO (Reuters) – Most Japanese regional economies continue to recover as the pain from a sales tax hike in April starts to ease, the Bank of Japan said in a quarterly report, maintaining its optimism on the outlook despite growing signs growth may be losing momentum.

Some regions saw the tax-hike pain moderated by a steady increase in foreign visitors thanks in part to a weak yen, which has recently drawn complaints from the business sector for inflating the cost of imports, the central bank said.

Oct 16, 2014

BOJ to stand pat even as inflation stalls, global markets tumble: sources

TOKYO (Reuters) – Even as growth and deflation fears roil global markets and weak data casts a shadow over Japan’s economy, the Bank of Japan appears set to resist pressure for more stimulus measures or to accept that its inflation target is unrealistically high.

People familiar with its deliberations said the BOJ, which has failed for two decades to drag Japan’s economy from the grip of no or zero inflation, is preparing to roughly halve its 1 percent economic growth forecast for this fiscal year, but stand pat on policy and its prediction that inflation will hit its 2 percent target in the year from next April.

Oct 11, 2014

World economies warn of global risks, call for bold action

WASHINGTON, Oct 11 (Reuters) – The International Monetary
Fund’s member countries on Saturday said bold action was needed
to bolster the global economic recovery and they urged
governments not to squelch growth by tightening budgets too
drastically, although Germany poured cold water on the idea of a
new global “crisis.”

With Japan’s economy floundering, the euro zone at risk of
recession and even China’s expansion slowing, the IMF’s steering
committee said focusing on growth was the priority.

Oct 11, 2014

IMF warns global economy at risk, calls for bold action

WASHINGTON (Reuters) – The International Monetary Fund’s member countries on Saturday said bold action was needed to bolster the global economic recovery, and they urged governments to take care not to squelch growth by tightening budgets too drastically.

With Japan’s economy floundering, the euro zone at risk of recession and the U.S. recovery too weak to generate a rise in incomes, the IMF’s steering committee said focusing on growth was the priority.

Oct 11, 2014

BOJ Kuroda says no gap in view with government on weak yen benefits

WASHINGTON (Reuters) – Bank of Japan Governor Haruhiko Kuroda said there was no gap in views between the government and the central bank that a weak yen was positive for the world’s third-largest economy.

He also appeared unfazed by recent sharp declines in global stock and crude oil prices, saying that the rise in market volatility was likely temporary and came from a very low level.

Oct 11, 2014

BOJ Kuroda says no gap in view with gov’t on weak yen benefits

WASHINGTON, Oct 10 (Reuters) – Bank of Japan Governor
Haruhiko Kuroda said there was no gap in views between the
government and the central bank that a weak yen was positive for
the world’s third-largest economy.

He also appeared unfazed by recent sharp declines in global
stock and crude oil prices, saying that the rise in market
volatility was likely temporary and came from a very low level.

Oct 10, 2014

Japan says global growth patchy, G20 shares need for package of steps

WASHINGTON (Reuters) – Group of 20 nations agree on the need for each member to pursue a package of fiscal, monetary steps and structural reforms to revive growth as the global economic recovery remains patchy, Japanese Finance Minister Taro Aso said on Thursday.

“The global economy continues to recover moderately. But the degree of recovery varies quite a lot from country to country,” Aso told reporters after attending a dinner session of G20 finance leaders, held on the sidelines of the IMF meetings in Washington.

Oct 9, 2014

IMF Shinohara says yen falls not too big, reflect U.S. fundamentals

WASHINGTON (Reuters) – Recent declines in the yen are due largely to the dollar’s strength and are not unexpectedly large when measured on a real, effective basis, a senior International Monetary Fund official said on Wednesday.

“What’s happening now is dollar strengthening. The U.S. economic outlook is quite favorable,” IMF Deputy Managing Director Naoyuki Shinohara told Reuters in an interview.

Oct 8, 2014

BOJ’s Kuroda pledges prolonged stimulus but signals no immediate action

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda stressed his resolve to maintain massive stimulus for a prolonged period but shrugged off the need to expand it soon, remaining upbeat on the outlook despite signs the economy may be in a mild recession.

Kuroda also stuck to his view that a weak yen is positive for Japan’s economy. But he slightly modified his tone by nodding to concerns from the business community that further yen declines will hurt small firms and households by boosting import costs.