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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.

Sep 11, 2014

BOJ chief tells Abe ready to take steps if price goal in doubt

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda told Prime Minister Shinzo Abe he is prepared to take whatever steps needed to achieve the central bank’s 2 percent inflation target if it comes under threat.

In a face-to-face meeting about the economy, however, Kuroda said he received no particular instructions from Abe. Kuroda said he discussed the economy after a sales tax increase in April and told Abe that Japan’s economic momentum remains intact.

Sep 11, 2014

BOJ drives rates below zero in sign aggressive easing to stay

KANAZAWA/TOKYO, Japan, Sept 11 (Reuters) – The Bank of Japan
drove a short-term interest rate below zero this week, a
dramatic step in its already unprecedented effort to stoke
inflation and a likely sign it will continue its aggressive
asset purchases.

The BOJ bought three-month bills for more than their
redemption value on Tuesday, traders said, essentially paying to
lend money to the market.

Sep 10, 2014

Bank of Japan drives rates below zero, stepping up aggressive easing

KANAZAWA Japan (Reuters) – The Bank of Japan drove a short-term interest rate below zero, a dramatic step in its already unprecedented effort to stoke inflation and a likely sign it will continue its aggressive asset purchases.

The BOJ bought three-month bills for more than their redemption value on Tuesday, traders said, essentially paying to lend money to the market.

Sep 10, 2014

BOJ drives rates below zero, stepping up aggressive easing

KANAZAWA, Japan, Sept 10 (Reuters) – The Bank of Japan drove
a short-term interest rate below zero, a dramatic step in its
already unprecedented effort to stoke inflation and a likely
sign it will continue its aggressive asset purchases.

The BOJ bought three-month bills for more than their
redemption value on Tuesday, traders said, essentially paying to
lend money to the market.

Sep 10, 2014

BOJ’s Iwata upbeat on economy, unfazed by post-tax hike slump

KANAZAWA Japan (Reuters) – Bank of Japan Deputy Governor Kikuo Iwata on Wednesday reiterated policymakers’ conviction that the economy can recover from a deep slump, saying that households and companies will boost spending as the pain from an April sales tax hike eases.

Iwata acknowledged that weak exports and the rising burden on households from the tax hike were among risks to the outlook, but said a pick-up in global demand and wages will keep the world’s third-largest economy on track for a moderate recovery.