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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Very limited chance' that BOJ will hike rates again this year: Former officialShigeto Nagai, head of Japan economics at Oxford Economics and former Bank of Japan official, says that's unlikely to happen until after 2025's shunto wage negotiations.
Persons: Shigeto Nagai Organizations: Oxford Economics, Bank of Japan Locations: Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's economy could end up in 'Japanese style' stagnation, economist saysShigeto Nagai, head of Japan at Oxford Economics, says that could happen if the current conditions in the property market continue.
Persons: Shigeto Nagai Organizations: Oxford Economics Locations: Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Bank of Japan is preparing for both upside and downside risks, economist saysShigeto Nagai, head of Japan economics at Oxford Economics, discusses the central bank's decision to make its yield curve control policy more flexible.
Persons: Shigeto Nagai Organizations: of Japan, Oxford Economics Locations: Japan
Kazuo Ueda, governor of the Bank of Japan (BOJ). Bloomberg | Bloomberg | Getty ImagesThe Bank of Japan announced Friday "greater flexibility" in its monetary policy — surprising global financial markets. The central bank loosened its yield curve control — or YCC — in an unexpected move with wide-ranging ramifications. When asked if the central bank had shifted from dovish to neutral, he said: "That's not the case. MUFG said that Friday's "flexibility" tweak shows the central bank is not yet ready to end this policy measure.
Persons: Kazuo Ueda, Shigeto Nagai, CNBC's, , Duncan Wrigley, MUFG, Governor Ueda, Michael Metcalfe, Metcalfe Organizations: Bank of Japan, Bloomberg, Getty, of Japan, Nasdaq, Oxford Economics, disinflation, Capital Economics, U.S, U.S . Federal, Bank, Pantheon, Street Global Locations: Europe, Japan, U.S ., China, dovish
The BOJ's decision contrasts sharply with that of the European Central Bank, which raised borrowing costs to a 22-year high on Thursday and signalled the likelihood of further hikes. Also this week, the U.S. Federal Reserve on Wednesday signalled it was not yet done with its fight against inflation. As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a 0% cap on the 10-year bond yield set under its yield curve control (YCC) policy. An upgrade to the BOJ's inflation forecast in a quarterly review in July is seen as a done-deal, though central bank officials have said a rise in inflation alone won't automatically trigger a policy shift. Ueda has said solid, sustained wage growth must accompany rising inflation for the BOJ to contemplate a policy tweak.
Persons: Kazuo Ueda's, Ueda's, Shigeto Nagai, Izuru Kato, Shunichi Suzuki, Ueda, Leika Kihara, Kantaro Komiya, Sam Holmes Organizations: Bank of Japan, European Central Bank, U.S . Federal Reserve, Oxford Economics, Totan, Graphics, Thomson Locations: TOKYO, Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan chief will probably 'play it safe' at his first policy meeting, economist saysShigeto Nagai of Oxford Economics says he expects Bank of Japan Governor Kazuo Ueda to stress that the central bank will maintain its easy monetary policy for the near term.
Adjusted for inflation, wages slipped 2.6% in February, compared to the same month a year earlier, according to government data released last week. That means it’ll be tough for Ueda to hike interest rates, especially as living standards aren’t rising either. The issue of stagnant wages could improve this year, as companies heed the call to raise salaries in response to inflation. Workers in Japan have been grappling with stagnant wages, leading to a government push for businesses to hike pay. But in Japan, it’s high enough to feel uncomfortable, given stagnant wage growth, according to Angrick.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailExpect to see persistent pressures on Japanese government bonds in the coming month, economist saysShigeto Nagai of Oxford Economics says it expects headline inflation will continue to rise and it may take some time to see a "visible decline" in core inflation.
Bank of Japan keeps ultra-low rates, dovish policy guidance
  + stars: | 2022-09-22 | by ( ) www.reuters.com   time to read: +11 min
Sept 22 (Reuters) - The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, reassuring markets that it will continue to swim against a global tide of central banks tightening monetary policy to combat soaring inflation. "However, we believe that the BOJ will never allocate monetary policy for the FX rate adjustment and will stick to the YCC policy. "The most important thing is how the foreign-exchange rate reacts to that contrast in monetary policy between the U.S. and Japan. It also leaves the impression there will be no change in monetary policy during Kuroda's remaining term." He has said lesser about any merit of the weak yen recently out of consideration towards public sentiment against rising costs of living."
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