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BOJ likely to hike rates in January, economist says
  + stars: | 2024-09-20 | 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 EmailBOJ likely to hike rates in January, economist saysKazuo Momma, executive economist at Mizuho Research & Technologies, explains why the Bank of Japan has "no reason" to "rush" into a rate-hiking cycle and will likely be "patient" until January.
Persons: Kazuo Momma Organizations: Mizuho Research & Technologies, Bank of Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMizuho economist: We shouldn't be too pessimistic about Japan's first-quarter GDP numbersKazuo Momma, executive economist at Mizuho Research & Technologies, discusses Japan's first-quarter gross domestic product data and the rosier outlook for the second quarter.
Persons: Kazuo Momma, Japan's Organizations: Mizuho, Mizuho Research & Technologies
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 EmailMizuho: Utilities have underperformed this year, but earnings look promisingAnthony Crowdell, Mizuho Research Analyst, discusses the utilities sector following the Fed's latest rate decision.
Persons: Anthony Crowdell Organizations: Mizuho, Utilities, Mizuho Research
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."
TOKYO, April 7 (Reuters) - The Bank of Japan (BOJ) should be cautious about changing its unconventional monetary policy for now, given financial market uncertainty due to problems in Western banks, former top financial diplomat Takehiko Nakao told Reuters in an interview. Nakao made the comments amid speculation the BOJ may abandon its yield curve control policy when new Governor Kazuo Ueda takes over incumbent Haruhiko Kuroda, whose term ends on April 8. U.S. bank failures and the buyout of Credit Suisse by UBS last month have driven financial market risk aversion. Nakao said the BOJ must carefully monitor market developments, for now, although credit anxiety was unlikely to morph into anything like the 2008/09 global financial crisis. "Yet, the BOJ cannot continue unconventional monetary policy, including ETF and REIT purchases and YCC, indefinitely.
The precedent set at the "shunto" spring wage talks also influences wages at smaller firms that employ seven out of 10 Japanese workers. The shunto wages eventually peaked in 1974 with a record 33% rise in pay. Wary of increasing fixed costs, many Japanese firms have long opted to pay one-off bonuses in good times rather than raise base pay. Economists projected a 2.85% wage increase in a January poll, with base pay increases accounting for 1.08% and 1.78% from an increase in additional salary, based on seniority. Asked whether they would carry out base pay increase, 41.6% said they intended to.
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."
TOKYO, Dec 27 (Reuters) - The Bank of Japan (BOJ) has modified its stimulus measures to ease the transition away from an unconventional monetary policy when Governor Haruhiko Kuroda retires in April, former top currency diplomat Takehiko Nakao told Reuters in an interview. "The BOJ has not succeeded so much in raising inflation expectations and bringing down real interest rates while side-effects became larger. "The yen was too strong back then, but now the yen is clearly too weak," Nakao said, declining to specify preferred levels under current circumstances. Nakao said Japan's waning economic power and its excessively expansionist policy are weighing on the yen and making Japanese assets vulnerable to takeovers by overseas investors. "It is helpful that raising interest rates lead to some strengthening of the yen."
Geopolitical risks in China, coupled with concerns over weaker demand, are weighing on stocks of electric vehicle makers. One company, however, stands out from the group and is best positioned to ride out any storm in China, according to Mizuho Securities. Within the group, Rivian has advantages that allow it to remain safe from China concerns, according to a Mizuho research report to clients. "We believe concerns of extended restrictive Covid policies and increasing U.S. technology restrictions could make upside from better fundamental outlooks for China EV OEMs less dependable." Tesla's move could pressure local electric vehicle makers such as XPeng and premium rivals including Nio, according to the note.
The forecast strongly suggested that core CPI would stay above the central bank's 2% inflation target for a sixth consecutive month. Governor Haruhiko Kuroda has repeatedly vowed to keep the BOJ's stimulus effort intact, because any cost-push rise in inflation would be temporary. It would be the 14th straight month of deficits and follow a record 2.817 trillion yen shortfall in August. Imports by value likely surged 45.0% in September from a year earlier, outpacing a 27.1% rise in exports, the poll showed. The government will release the consumer price data on Oct. 21 at 8:30 a.m. (Oct. 20, 2330 GMT) and the trade balance data on Oct. 20 at 8:50 a.m. (Oct. 19, 2350 GMT).
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