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☆ BOJ discussed factors for exiting easy policy at Sept meeting; 10-yr JGBs falter
▼ + stars: | 2023-10-02 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

FILE PHOTO: Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. Under yield curve control (YCC), the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around zero. A Reuters poll in September forecast that the central bank will end its negative interest rate policy some time next year and YCC by end of 2024. “Even if the BOJ were to terminate its negative interest rate policy, this can be considered as continuation of monetary easing if real interest rates remain negative. But he has also said the BOJ will consider an exit when sustained, stable achievement of its price target is in sight.

Persons: Issei Kato, Kazuo Ueda’s, Governor Ueda, Ueda Organizations: Bank of Japan, REUTERS, Reuters, Bank Locations: TOKYO, Tokyo, Japan, YCC

☆ BOJ keeps ultra-loose policy, dovish guidance on outlook
▼ + stars: | 2023-09-21 | by ( Leika Kihara | Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

FILE PHOTO: Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. It also left unchanged an allowance band of 50 basis point set either side of the yield target, as well as a new hard cap of 1.0% adopted in July. A Reuters poll for September showed most economists predicting an end to negative interest rates in 2024. But some analysts see the yen, rather than wage growth or inflation, as the primary trigger for BOJ action. Growing prospects of higher-for-longer U.S. interest rates have pushed the yen down near the 150-per-dollar level, seen as Tokyo’s line-in-the-sand for possible currency intervention.

Persons: Issei Kato, Kazuo Ueda’s, Ueda, Haruhiko Organizations: Bank of Japan, REUTERS Locations: TOKYO, Tokyo, Japan, “, U.S

☆ BOJ to heighten scrutiny on rising prices, yields at policy meeting
▼ + stars: | 2023-09-21 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

All economists surveyed in a Reuters poll expect the central bank to maintain its short-term interest rate target of -0.1% and that for the 10-year bond yield around 0%. Ueda told a recent interview the BOJ could have enough data by year-end to determine whether to end negative rates, heightening market expectations of a near-term policy shift. A Reuters poll for September showed most economists predicting an end to negative interest rates in 2024. Growing prospects of longer-for-higher U.S. interest rates have pushed the yen down near the 150-per-dollar level seen as Tokyo’s line-in-the-sand for possible currency intervention. Mari Iwashita, chief market economist at Daiwa Securities, expects the BOJ to tweak its dovish forward guidance in October and end its negative rate policy early next year.

Persons: Issei Kato, Kazuo Ueda’s, Ueda, Haruhiko, Mari Iwashita, ” Organizations: Bank of, Bank of Japan, REUTERS, Daiwa Securities Locations: TOKYO, Bank of Japan, Tokyo, Japan, U.S

☆ Analysis-China's economic gloom hangs over Japan's long-awaited recovery
▼ + stars: | 2023-09-06 | by ( Tetsushi Kajimoto | Leika Kihara | ) www.reuters.com time to read: +5 min

TOKYO (Reuters) - Policymakers in Tokyo believe China’s deepening economic woes could hit Japan’s fragile recovery, especially if Beijing fails to shore up demand with meaningful stimulus, potentially delaying an exit from ultra-loose monetary policy. China is Japan’s largest trading partner, accounting for 20% of its exports, having replaced the United States in 2020. “Exports to China had already been weak and headwinds to inbound tourism are clearly bad for Japan’s economy,” said Toru Suehiro, chief economist at Daiwa Securities. Firms also promised wage hikes unseen in three decades this year, heightening the case for a retreat from decades of ultra-loose monetary policy. The darkening outlook for Japan’s recovery may push back the timing of a BOJ policy shift.

Persons: Marko Djurica, Kazuo Ueda’s, ”, Hiroyuki Ogawa, Ogawa, Takeshi Niinami, Toru Suehiro, Ueda, Toyoaki Nakamura, “, Seisaku Kameda Organizations: REUTERS, Bank of Japan’s, Reuters, Japan, Komatsu Ltd, Komatsu, Suntory Holdings, Daiwa Securities, Japan’s Sompo Holdings Locations: TOKYO, Tokyo, Beijing, Japan, United States, China

☆ Asia shares subdued, yen shunned as euro shines
▼ + stars: | 2023-06-28 | by ( Wayne Cole | ) www.reuters.com time to read: +5 min

“The data indicated a firmer pace of residential, inventory, and equipment investment in the second quarter,” wrote analysts at Goldman Sachs. Markets imply a 90% probability of an ECB rate hike to 3.75% in July and a peak around 4.0%. That underpinned the euro at $1.0950, while keeping it near a 15-year peak of 157.97 yen. The dollar had hit a near eight-month top of 144.18 yen, before easing back to 143.96 as Japanese officials again protested against the yen’s weakness. Yet, a rally in the yen looks unlikely while the Bank of Japan maintains its super-easy monetary policy.

Persons: Kim Kyung, Jerome Powell, Christine Lagarde, Kazuo Ueda, ”, Advantest, Goldman Sachs, “, Masato Kanda, Ueda’s, Carol Kong, Brent firmed Organizations: SYDNEY, National Printing Bureau, Bank of Japan, REUTERS, European Central Bank, ECB, ANZ, Wall, Journal, Nvidia, Nikkei, Chip, Tokyo, Federal Reserve, CBA Locations: Japan, Tokyo, Portugal, U.S, Asia, Pacific, Beijing, Washington, China, Europe

☆ Asia shares hesitant, yen slide stokes intervention risk
▼ + stars: | 2023-06-28 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

Markets imply a 90% probability of a rate hike to 3.75% in July and a peak around 4.0%. The euro responded by climbing to $1.0957, while surging on the low-yielding yen to a 15-year peak of 157.97. The dollar rose to a near eight-month peak of 144.18 yen, before easing back to 143.87 as Japanese officials again protested the weakness in the yen. Yet, a rally in the yen looks unlikely while the Bank of Japan maintains its super-easy monetary policy. “So we now see a higher risk Japanese authorities will step into the market to prop up the JPY.”In commodities, gold steadied at $1,915 an ounce, after finding support at the recent three-month low of $1,909.99.

Persons: Kim Kyung, Jerome Powell, Christine Lagarde, Kazuo Ueda, ”, Goldman Sachs, “, Masato Kanda, Ueda’s, Carol Kong, Brent firmed Organizations: SYDNEY, National Printing Bureau, Bank of Japan, REUTERS, European Central Bank, ECB, ANZ, Japan’s Nikkei, Nasdaq, Wall, Washington, Nvidia, Federal Reserve, CBA Locations: Japan, Tokyo, Portugal, U.S, Asia, Pacific, China, Europe

☆ Japan’s economic scars might blind it to inflation
▼ + stars: | 2023-06-13 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +8 min

Investors worry about market ructions if Ueda hikes rates now but there is another risk: that he waits too long. Reuters GraphicsUeda’s inaction – and the domestic markets’ positive response – have bought him time to focus on evaluating macroeconomic fundamentals, particularly inflation. The country only emerged from a decades-long deflationary rut relatively recently, so local economists, executives and consumers are unused to worrying about consumer prices rising too fast. The government’s latest draft of its long-term economic plan, seen by Reuters on June 2, remains focused on eradicating Japan's “long-held deflationary mindset”. "We expect inflation to quite clearly slow below 2%" toward the middle of the current fiscal year, Ueda told parliament.

Persons: Kazuo Ueda, Haruhiko Kuroda, Ueda, ’, –, Richard Koo, Shinzo Abe, Francesco Guerrera, Katrina Hamlin Organizations: Reuters, Bank of Japan, Nikkei, Nasdaq, Bank for International, Toyota, Toshiba, Black Monday, Japan Inc, International Monetary Fund, of, Thomson Locations: TOKYO, Japan, United States, U.S, Great, China, Europe, Germany, Italy, of Japan’s

☆ Before Carlos Alcaraz Was Great, He Was Good Enough to Be Lucky
▼ + stars: | 2023-05-28 | by ( Matthew Futterman | ) www.nytimes.com time to read: +2 min

So Grandpa Alcaraz (another Carlos) made sure to include those courts with the development. López Rueda is the tennis-mad chief executive of Postres Reina, which is based in Caravaca de la Cruz. But López Rueda doesn’t just like tennis; he likes to play tennis on red clay. One day López Rueda agreed to watch the boy play and it was unlike anything he had ever seen. Alcaraz became the first, wearing the company logo on his shirts.

☆ Living standards are still falling in Japan. That’s a recipe for more stagnation
▼ + stars: | 2023-04-12 | by ( Michelle Toh | ) edition.cnn.com time to read: +5 min

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.

☆ Bank of Japan’s new governor starts on back foot
▼ + stars: | 2023-02-14 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +3 min

HONG KONG, Feb 14 (Reuters Breakingviews) - Academic Kazuo Ueda faces a rocky time as the new governor of the Bank of Japan (8301.T). He is stepping down just as his signature yield curve control (YCC) policy is becoming increasingly unsustainable as domestic inflation rises. The Nikkei news service reported that officials had approached Deputy Governor Masayoshi Amamiya and were rebuffed. It seems likely Ueda will have to modify or abandon YCC given how much damage it is doing to the bond market and the BOJ’s balance sheet. Follow @petesweeneypro on TwitterloadingCONTEXT NEWSJapan's government on Feb. 14 named academic Kazuo Ueda as its pick to become the next governor of the country’s central bank.

☆ Kazuo Ueda nominated to lead Japan's central bank in possible move away from ultra-easy policy
▼ + stars: | 2023-02-14 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —The Japanese government has nominated Kazuo Ueda to lead its central bank, in a surprise move that could pave the way for the country to wind down its ultra-loose monetary policy. Accommodative is a term used to describe monetary policy that adjusts to adverse market conditions and usually involves keeping interest rates low to spur growth and employment. As part of that program, the central bank targeted some short-term interest rates at an ultra-dovish minus 0.1% and aimed for 10-year government bond yields around 0%. But as prices rose and interest rates elsewhere went up, pressure has grown on the BOJ to wind down YCC. But Kuroda later dismissed a near-term exit from his ultra-loose monetary policy.

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