Leika's Feed
Jul 24, 2014

Japan consumer inflation eases in June as weak yen impact fades

TOKYO (Reuters) – Japan’s core consumer inflation eased slightly in the year to June as an increase in import costs from a weak yen faded, highlighting the challenges the central bank faces in meeting its 2 percent inflation target sometime next year.

But the slowdown comes as no surprise to the Bank of Japan, which has said inflation will continue to slow to around 1 percent in coming months as the impact of the weak yen dwindles, before it picks up again as a tight labor market lifts wages.

Jul 24, 2014

Japan walking ‘tightrope’ on public debt as yields set to rise: Amari

TOKYO (Reuters) – Japanese long-term interest rates are set to rise as Prime Minister Shinzo Abe’s stimulus policies boost economic growth, Economics Minister Akira Amari said, stressing the need to keep up efforts to rein in the country’s massive public debt.

“Long-term rates are now unexpectedly low and stable, though we shouldn’t take this for granted. As the economy recovers due to our ‘Abenomics’ policies, it’s natural for rates to rise,” Amari told business executives at a seminar on Thursday.

Jul 24, 2014

BOJ’s Kuroda expresses caution about capital flows into Asia

July 24 (Reuters) – Bank of Japan Governor Haruhiko Kuroda
said on Thursday current global ultra-loose monetary conditions
raise the possibility of unhealthy capital flows into Asian
economies.

Asian countries need to make sure their financial systems
are robust and keep a watchful eye on credit growth to ensure
that external shocks do not harm their domestic demand-driven
recoveries, Kuroda also said.

Jul 23, 2014

BOJ Deputy Governor Nakaso says end of deflation in sight

SHIZUOKA Japan (Reuters) – Bank of Japan Deputy Governor Hiroshi Nakaso said the country was eyeing an end to deflation as rising wages and inflation expectations allow companies to increase prices of their goods, signalling confidence over a sustained economic recovery.

But he voiced caution over sluggish exports and stressed that the world’s third-largest economy is only halfway to meeting the central bank’s 2 percent price target, suggesting that the BOJ is nowhere near to withdrawing its massive monetary stimulus.

Jul 9, 2014

BOJ may slightly cut economic forecast, policy seen steady

TOKYO (Reuters) – The Bank of Japan may trim its economic growth forecast for the current year next week, sources familiar with its thinking said, reflecting soft exports and a bigger-than-expected slump in household spending after a sales tax hike in April.

But the central bank will roughly maintain its upbeat price projections and stick to its view that the world’s third-largest economy will continue a moderate recovery as the pain from the tax hike heals, the sources said on condition of anonymity.

Jul 8, 2014

BOJ has ‘extensive’ tools to end QQE: Deputy Governor Nakaso

TOKYO (Reuters) – The Bank of Japan already has an “extensive” range of instruments to engineer an exit from its massive stimulus program, Deputy Governor Hiroshi Nakaso said on Tuesday.

But Nakaso stressed that it was premature to discuss specific measures to exit the central bank’s “quantitative and qualitative easing” (QQE) program.

Jul 8, 2014

BOJ has “extensive” tools to end QQE – Deputy Gov Nakaso

TOKYO, July 8 (Reuters) – The Bank of Japan already has an
“extensive” range of instruments to engineer an exit from its
massive stimulus programme, Deputy Governor Hiroshi Nakaso said
on Tuesday.

But Nakaso stressed that it was premature to discuss
specific measures to exit the central bank’s “quantitative and
qualitative easing” (QQE) programme.

Jul 7, 2014

BOJ upbeat on regional economies, reassures easy policy to stay

TOKYO (Reuters) – The Bank of Japan kept its upbeat assessment for all of the country’s nine regions, saying a moderate recovery was taking hold and bolstering views the economy is on track to meet the central bank’s price target without more monetary stimulus.

But central bank governor, Haruhiko Kuroda, stressed his resolve to maintain the massive stimulus program for as long as necessary to sustainably achieve its 2 percent inflation target, reassuring markets that an exit from the ultra-loose policy was still distant.

Jul 7, 2014

Central banks ending era of clear promises, return to ‘artful’ policy

NEW YORK/TOKYO (Reuters) – The world’s major central banks are returning to a more opaque and artful approach to policymaking, ending a crisis-era experiment with explicit promises that they found risked their credibility and did not substitute for action.

From Washington to London to Tokyo, the global shift from transparency to flexibility underscores the challenges central bankers face as they test the limits of what monetary policy can achieve.

Jul 7, 2014

Insight – Central banks ending era of clear promises, return to ‘artful’ policy

NEW YORK/TOKYO (Reuters) – The world’s major central banks are returning to a more opaque and artful approach to policymaking, ending a crisis-era experiment with explicit promises that they found risked their credibility and did not substitute for action.

From Washington to London to Tokyo, the global shift from transparency to flexibility underscores the challenges central bankers face as they test the limits of what monetary policy can achieve.