HAKODATE, Japan (Reuters) – Bank of Japan board member Takehiro Sato said he saw no need to expand monetary stimulus pre-emptively to counter the pain to the economy from next year’s sales tax hike, seeking to dispel speculation of a near-term expansion of its ultra-easy policy.
Even if the BOJ had tools remaining to expand stimulus, doing so could be counter-productive after having deployed all possible steps in a single blow in April, said Sato, who is among those in the board who are more pessimistic about prospects for achieving the central bank’s inflation target.
TOKYO (Reuters) – A year into “Abenomics,” it was not supposed to be like this for the Bank of Japan.
The central bank, its boss hand-picked by Prime Minister Shinzo Abe, shot the first, and so far most successful, arrow from Abe’s quiver of aggressive policies to pull the world’s third-biggest economy out of almost two decades of deflation and lackluster growth.
TOKYO, Dec 2 (Reuters) – A year into “Abenomics,” it was not
supposed to be like this for the Bank of Japan.
The central bank, its boss hand-picked by Prime Minister
Shinzo Abe, shot the first, and so far most successful, arrow
from Abe’s quiver of aggressive policies to pull the world’s
third-biggest economy out of almost two decades of deflation and
NAGOYA/TOKYO, Japan (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday he saw no need to water down the bank’s commitment to achieve 2 percent inflation in two years, stressing that the country was on track to meet the target despite risks from soft overseas growth.
He also signalled the bank’s readiness to maintain its ultra-loose policy for as long as needed to sustainably achieve the inflation target, or expand stimulus further if the economy and prices sharply undershoot its forecasts.
TOKYO/NAGOYA, Japan (Reuters) – Japanese companies raised spending on factories and equipment in the July-September quarter, but the slow pace of increase casts some doubt on the strength of capital spending that is needed to help sustain economic growth.
Bank of Japan Governor Haruhiko Kuroda said capital expenditure will likely increase as a trend, though he warned that overseas uncertainties were among key risks in meeting the central bank’s goal of accelerating inflation to 2 percent in roughly two years.
TOKYO (Reuters) – Japanese consumer inflation accelerated to a five-year high and factory output rose for a second straight month in October, more evidence a recovery in the world’s third-largest economy is on track to extend into 2014.
In an encouraging sign that Japan may be escaping persistent deflation, a narrower measure of prices that excludes both food and energy rose at its fastest pace in 15 years.
TOKUSHIMA, Japan, Nov 27 (Reuters) – Bank of Japan board
member Sayuri Shirai said prospects for achieving the bank’s
inflation target were uncertain, warning that soft exports may
discourage firms from boosting wages and capital expenditure
enough to sustain an economic recovery.
But Shirai — among the growing number of pessimists in the
nine-member board — dismissed calls to water down the 2 percent
inflation target such as by replacing it with a range for
desirable price growth, saying that doing so now would erode
confidence in the BOJ’s monetary policy.
TOKYO (Reuters) – European Central Bank Governing Council member Christian Noyer said on Monday that interest rates have to remain low for an extended period and might go even lower if needed as officials try to ensure the euro zone does not fall into deflation.
Central bankers have to invent policies to achieve price stability if conventional monetary policy stops working, Noyer said, suggesting the ECB will keep its options open after a surprise slowdown in inflation.
TOKYO, Nov 25 (Reuters) – Bank of Japan Governor Haruhiko
Kuroda on Monday stressed the bank’s resolve to maintain its
ultra-loose monetary policy and expand stimulus further if risks
to the economy threaten its 2 percent price target.
Kuroda, however, shrugged off negative interest rates as a
realistic option for central banks even as they become
increasingly reliant on unconventional steps to stimulate their
economies, pointing out that the implications for an economy
TOKYO (Reuters) – A senior European Central Bank official said slowing price growth, or disinflation, in Europe is likely to continue for now, but will not progress to deflation because the economy is recovering and inflation expectations remain anchored around 2 percent.
Executive board member Benoit Coeure said Europe’s economy is stabilising and the banking sector is strengthening, but policymakers need to make progress with structural reforms to bring down unemployment and encourage business investment.