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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJapanese central bank's stance can be viewed as dovish, says former BOJ officialKazuo Momma, executive economist at Mizuho Research & Technologies and former Bank of Japan assistant governor, discusses Bank of Japan's decision to keep its key rate unchanged.
Persons: Kazuo Momma Organizations: Mizuho Research & Technologies, Bank of Japan
Fuji and Tokyo skyline Jackyenjoyphotography | Moment | Getty ImagesJapan's Nikkei stock index has been on a record-breaking spree on the back of robust earnings and investor-friendly measures. But the country's ailing economy has experts divided over this sustainability of this rally. Japan's corporate governance reforms have been a key driver for the country's stock markets, Momma said, while stressing that stock indexes do not necessarily represent the entire economy that includes SMEs and households. SMEs are a critical lever in the Japanese economy, accounting for 70% of national employment and 50% of the country's economic growth. "Spillover from the global boom of AI-related stocks certainly helped Nikkei," Momma said.
Persons: Kazuo Momma, Momma, Sayuri Shirai, pare, Shirai, Phillip Colmar MRB Organizations: Nikkei, Mizuho Research, CNBC, Bank of Japan, Nvidia, Technology, Stock, Keio University, Bank of America, Phillip Colmar MRB Partners Locations: Fuji, Tokyo, Germany, Japan, U.S, China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNo reason for Bank of Japan's new governor to make monetary policy changes this year, says economistKazuo Momma, executive economist at Mizuho Research & Technologies and former assistant governor at the Bank of Japan, says any changes to yield curve control "should be regarded as a possible improvement of the monetary policy framework, rather than a change to the monetary policy itself."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan doesn't have much motivation to change yield curve control policy, says economistKazuo Momma of Mizuho Research Institute says Bank of Japan governor Haruhiko Kuroda is likely to keep policy as it is and hand over to his successor Kazuo Ueda "as it is."
PUBLIC DISCONTENTAfter a tumultuous year for the world's third-largest economy, Japan's central bank and its leadership face a critical moment. While ruling out the need to ditch the yield cap now, Takata recently said he saw positive developments in wage growth. "The BOJ must start worrying about the possibility of inflation accelerating more than expected," he told Reuters, adding the BOJ may abandon its yield cap as early as next year. Such a reaction was seen in March when the BOJ was forced to pledge unlimited bond buying to defend its yield cap from speculative market attacks. "That's why the BOJ won't provide advance signals and remove the yield cap in a single step."
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