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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of America says Japan Inc needs to make investments to improve productivityThe ability of Japan's small and medium enterprises to adapt to an environment of higher wages and inflation is crucial because they provide 70% of jobs, says Izumi Devalier, Bank of America's head of Japan economics.
Persons: Izumi Devalier Organizations: Email Bank of America, Japan Inc, Bank of Locations: Japan
Economist discusses outlook for Japanese economy and inflation
  + stars: | 2023-08-29 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHopes in Japan that running a 'high pressure economy' will motivate firms to raise wages: EconomistIzumi Devalier, head of Japan economics at Bank of America Global Research, says "the government … has the same goal as the Bank of Japan in the sense that it is keen on capturing this opportunity to reanchor inflation and inflation expectations higher."
Persons: Izumi Devalier, Organizations: Bank of America Global Research, Bank of Japan Locations: Japan
Why It MattersJapan is the world’s third-largest economy, and the largest creditor by far. Covid didn’t hit Japan’s economy as hard as it did other countries. The anemic yen has been a double-edged sword for the economy, said Takahide Kiuchi, an economist at the Nomura Research Institute. “However, it could undermine consumption.”BackgroundJapan’s has long suffered from sluggish economic growth. Recent softness in China, Japan’s largest trade partner, is a particular source of worry.
Persons: didn’t, Takahide Kiuchi, , Japan’s, Izumi Devalier, Ms, Devalier, ” Mr, Kiuchi Organizations: Nomura Research Institute, Bank of Japan, Bank of America Locations: Japan, United States, China, Europe
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan may be being 'purposefully' conservative in its inflation forecast, economist saysIzumi Devalier of Bank of America Global Research says the Bank of Japan probably "doesn't want a situation where markets anticipate monetary policy normalization."
Persons: Izumi Devalier Organizations: Email Bank of Japan, Bank of America Global Research, Bank of Locations: Bank of Japan
Bloomberg | Bloomberg | Getty ImagesKazuo Ueda is set to become the next governor of the Bank of Japan, succeeding current central bank chief Governor Haruhiko Kuroda. Kishida recently emphasized the need for the next central bank governor to have "global communication skills" and be able to coordinate closely with global peers, Reuters reported, citing his comments in parliament. He has led the central bank's ultra-dovish monetary policy, including maintaining a negative interest rate since 2016 – even as global peers have been hiking to tackle inflation. Bank of America Global Research expects gradual policy normalization under the central bank's new leadership instead of an abrupt change, according to the firm's economists led by Izumi Devalier. 'Well-suited' deputiesJapan's government also reportedly announced its nominees for other central bank roles including Shinichi Uchida, currently the central bank's executive director, and Ryozo Himino, the former chief of Japan's Financial Services Agency.
This picture taken on October 27, 2022 shows pedestrians walking in front of the Bank of Japan (BoJ) headquarters in Tokyo. The move would come less than a month after the Bank of Japan caught markets off guard by widening its tolerance range for 10-year Japanese government bond yields. Indeed, Nikkei reported Monday that the Bank of Japan purchased JGBs worth more than 2 trillion yen ($15.6 billion) after the nation's 10-year bond yield curve topped 0.5% for two consecutive sessions. While the central bank leaving interest rates unchanged would be positive for Japanese stocks, BofA said a removal of its yield curve control policy could lead to sharp declines. HSBC, meanwhile, expects the central bank to announce further widening of the yield curve control tolerance band instead of abolishing the policy altogether.
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