DIRS.INFO The most relevant business & tech news

Summary Sept core consumer prices up 2.8% yr/yr vs f'cast +2.7%Core-core index up 4.2% yr/yr in Sept - govtData among factors to come under scrutiny at BOJ's Oct meetingTOKYO, Oct 20 (Reuters) - Japan's core inflation in September slowed below the 3% threshold for the first time in over a year but stayed above the central bank target, keeping alive expectations that policymakers will phase out ultra-easy monetary policy. "While inflation weakened in September, we think inflation will only fall below the BoJ's 2% target by the end of next year," said Marcel Thieliant, head of Asia-Pacific at Capital Economics. The nationwide core consumer price index (CPI), which excludes volatile fresh food costs, rose 2.8% in September from a year earlier - the first time it has slowed below 3% since August 2022, government data showed on Friday. All the same, the rate has tracked above the BOJ's 2% target for 18 straight months. Reporting by Takahiko Wada and Leika Kihara; Editing by Muralikumar Anantharaman and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

Persons: Marcel Thieliant, Takahiko Wada, Leika, Muralikumar Anantharaman Organizations: Bank of Japan, Capital Economics, Thomson Locations: TOKYO, Asia

☆ Japan's property market shows signs of overheating, central bank says
▼ + stars: | 2023-10-20 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

In a heat map of economy sectors which are running hot, the ratio of investment by real estate firms to gross domestic product (GDP) turned "red", a signal that the property market was overheating, the central bank said. "The increase in real estate firms' investment has been accelerated by urban redevelopment projects by major real estate developers," it added. "In some limited commercial areas in central Tokyo, transactions in the higher price range have been increasing," it said, adding that developments in the real estate transaction market "continue to warrant close monitoring". Japanese banks could also face risks from the rising possibility of interest rates remaining high overseas, it added. But credit costs could rise abruptly, particularly for loans to Asia, if overseas interest rates stay higher for longer, it warned.

Persons: Kim Kyung, Banks, Leika Kihara, Kim Coghill, Clarence Fernandez Organizations: REUTERS, Bank of Japan, Bank, U.S . Federal Reserve, Thomson Locations: Tokyo, Japan, TOKYO, Asia

☆ BOJ to release quarterly report that may offer clues on wages
▼ + stars: | 2023-10-19 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

TOKYO, Oct 19 (Reuters) - The Bank of Japan will release a regional economic report on Thursday that may offer clues on whether companies across the country will raise wages next year, and help lay the groundwork for phasing out the central bank's massive monetary stimulus. The report, due at 2 p.m. (0500 GMT), will be closely scrutinised by the central bank's nine-member board at its Oct. 30 to 31 policy meeting, which will compile fresh quarterly growth and inflation projections. The report is drawing more attention than usual this time for possible early clues on whether wage hikes will continue next year and broaden out to smaller firms. That would be seen as a key condition for the BOJ to dial back its stimulus, analysts say. The key for policymakers, however, is whether companies keep hiking wages next year, including smaller firms and across regions.

Persons: Kazuo Ueda, Ueda, Rengo, Leika Kihara, Edmund Klamann Organizations: Bank of Japan, NHK, Reuters, Thomson Locations: TOKYO, Japan

☆ IMF warning on China puts 'Japanization' risk in spotlight
▼ + stars: | 2023-10-16 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

"Under the Xi administration, China probably shifted its attention away from economics," he told Reuters. "What's fast emerging is the risk of China slipping into deflation, or the 'Japanization' of its economy," Bank of Japan (BOJ) board member Asahi Noguchi said on Thursday. In its World Economic Outlook, the IMF cut China's growth forecast for this year to 5.0% from 5.2% in April, and warned that its property sector crisis could deepen with global spillovers. To be sure, there are differences between what is happening in China and the experience of Japan. "Overall, we believe that China can avoid a prolonged period of sub-par growth with the right policies," Srinivasan said, when asked about the chance of "Japanization" in China.

Persons: Aly, Hiroshi Watanabe's, Hiroshi Watanabe, Japan's, Watanabe, Xi, Asahi Noguchi, Krishna Srinivasan, Srinivasan, doesn't, Leika Kihara, Tetsushi Kajimoto, Chizu Organizations: China Evergrande Group, REUTERS, Japan, Reuters, International Monetary Fund, World Bank, Bank of Japan, Economic, Pacific Department, Thomson Locations: Danzhou, Hainan province, China, Japan, MARRAKECH, Morocco, Marrakech, Asia, Beijing, Tokyo

☆ Key takeaways from the IMF/World Bank meetings
▼ + stars: | 2023-10-14 | by ( ) www.reuters.com time to read: +5 min

Global inflation is seen dropping from 6.9% this year to a still-high 5.8% next. Italian central bank governor Ignazio Visco said there was an impression markets were "reevaluating the term premium" as investors become more nervous about holding longer term debt. One debt restructuring deal emerged: Zambia finally agreed a debt rework memorandum of understanding with creditors including China and France. Sri Lanka said on Thursday it reached an agreement with the Export-Import Bank of China covering about $4.2 billion of debt, while talks with other official creditors are stalling. There was much talk ahead of Marrakech on revamping the IMF and World Bank to better reflect the emergence of economies like China and Brazil.

Persons: Ajay Banga, Mercy Tembon, Finance Serhiy Marchenko, Ceda Ogada, Kristalina Georgieva, Pierre, Olivier Gourinchas, Ignazio Visco, Joyce Chang, Vitor Gaspar, Mehmet Simsek, Murat Ulgen, Kate Donald, Ahmed El Jechtimi, Andrea Shalal, David Lawder, Leika Kihara, Elisa Martinuzzi, Rachel Savage, Jorgelina, Rosario, Balazs Koranyi, Mark John, Christina Fincher Organizations: Bank, Finance, International Monetary Fund, Emerging, Research, HSBC, Reuters, Export, Import Bank of, World Bank, Oxfam International's Washington DC Office, Thomson Locations: Ukraine, MARRAKECH, Morocco, Moroccan, Marrakech, Israel, Central, United States, China, Italy, Italian, Turkey, Kenya, Zambia, France, Sri Lanka, Import Bank of China, Brazil, U.S

☆ IMF sees recent yen falls as reflecting fundamentals
▼ + stars: | 2023-10-14 | by ( Leika Kihara | ) www.reuters.com time to read: +1 min

Banknotes of Japanese yen are seen in this illustration picture taken September 23, 2022. "On the yen, our sense is that the exchange rate is driven pretty much by fundamentals. As long as interest rate differentials remain, the yen will continue to face pressure," Sanjaya Panth, deputy director of the IMF's Asia and Pacific Department, told reporters. Authorities in Japan are facing renewed pressure to combat a sustained depreciation in the yen , as investors bet on higher-for-longer U.S. interest rates while the Bank of Japan remains wedded to its super low interest rate policy. "I don't think any of the three considerations are existing right now," he said, when asked whether recent yen falls call for authorities to intervene in the currency market.

Persons: Florence Lo, Panth, Leika Kihara, Emelia Sithole, Mike Harrison Organizations: REUTERS, Rights, Monetary Fund, Pacific Department, Authorities, Bank of Japan, IMF, Thomson Locations: Rights MARRAKECH, Morocco, Asia, Japan

China, whose economy is now three times the size it was in 2010, continued to push for more IMF shares. IMFC members agreed to add a third IMF Executive Board chair to represent African countries, a key sweetener for the U.S. "equi-proportional quota plan. Pan said China supported this move but it was a separate issue from the shareholding formula. It also called for the IMF's Executive Board to propose options for changes to the shareholding formula by June 2025. This would accelerate the next five-year review of quotas and meet IMF Managing Director Kristalina Georgieva's call for a deadline on adjusting its shareholding to preserve its credibility.

Persons: Nadia Calvino, Kristalina Georgieva, Pan Gongsheng, Pan, Kristalina, Georgieva, David Lawder, Andrea Shalal, Sharon Singleton, Christina Fincher, Franklin Paul, Diane Craft Organizations: Monetary, Financial, International Monetary Fund, World Bank, Monetary Fund, IMF, Fund, The U.S . Treasury, People's Bank of China, Beijing, IMF's, U.S . Treasury, United Arab, Thomson Locations: Marrakech, Morocco, MARRAKECH, U.S, China, CHINA, The U.S, India, Ukraine, Israel, Gaza, United Arab Emirates

☆ IMF says Asian economies under cosh as China's property woes bite
▼ + stars: | 2023-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

China's post-lockdown economic boost lost momentum earlier than expected, the IMF said. "On the downside, a more protracted real estate crisis and limited policy response in China would deepen the regional slowdown." A sudden tightening of global financial conditions could lead to capital outflows and weaken exchange rates in Asia, the blog added. "While Asia is still set to contribute about two-thirds of all global growth this year, it is important to note that growth is significantly lower than what was projected before the pandemic," the IMF said. The Bank of Japan (BOJ) had maintained a cap on the country's 10-year bond yield at around zero, to support a fragile economy.

Persons: Aly, Leika, John Stonestreet Organizations: China Evergrande Group, REUTERS, China, International Monetary Fund, IMF, Bank of Japan, Thomson Locations: Danzhou, Hainan province, China, Asia, MARRAKECH, Morroco, U.S, outflows, Marrakech, Japan

☆ Japan tells G20 it may need to act in FX market
▼ + stars: | 2023-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

The remarks came as the yen renewed its declines against the dollar, and underscored Tokyo's resolve to keep markets on edge over the chance of exchange-rate intervention to prop up the Japanese currency. "I told the G20 meeting we need to be mindful of the risk that market volatility could heighten, including in the currency market, as monetary tightening continues globally," Suzuki told a news conference after attending a meeting of Group of 20 (G20) finance ministers and central bank governors. "I also said excess volatility in the currency market was undesirable, and that we may need to take appropriate action depending on developments," Suzuki said. The official said Tokyo stood ready to act in the currency market if market moves become too volatile. Japan last intervened in the currency market to prop up the yen in September and October last year.

Persons: Shunichi Suzuki, Susana Vera, Suzuki, Kazuo Ueda, Leika Kihara, Cynthia Osterman, David Gregorio, Marguerita Choy Organizations: International Monetary Fund, World Bank, REUTERS, Japanese Finance, . Federal Reserve, Bank of Japan, Group, Thomson Locations: Marrakech, Morocco, Tokyo, MARRAKECH, Japan

☆ Analysis: IMF warning on China puts 'Japanization' risk in spotlight
▼ + stars: | 2023-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Persons: Aly, Hiroshi Wanatabe, Watanabe, Xi, Asahi Noguchi, Krishna Srinivasan, Srinivasan, doesn't, Leika Kihara, Tetsushi Kajimoto, Chizu Organizations: China Evergrande Group, REUTERS, Japan, Reuters, International Monetary Fund, World Bank, Bank of Japan, Economic, Pacific Department, Thomson Locations: Danzhou, Hainan province, China, Japan, MARRAKECH, Morocco, Marrakech, Asia, Beijing, Tokyo

☆ Japan firms to issue digital currency for clear energy transaction
▼ + stars: | 2023-10-12 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Edgar Su/File photo Acquire Licensing RightsOct 12 (Reuters) - A group of Japanese firms will issue a digital currency by July 2024 for the transaction and settlement of clean energy certificates, cryptocurrency exchange DeCurret said on Thursday. GMO Aozora Net Bank will issue the yen-based digital currency, called "DCJPY", which will then be used by telecommunication firm Internet Initiative Japan (IIJ) for settlement of clean energy certificates, DeCurret said. Transaction of DCJPY will be made using a network launched by DeCurret which, unlike stablecoin, is backed by bank deposits through block-chain technology, DeCurret added. DeCurret has been spearheading the launch of a digital currency by anchoring discussions at a consortium of Japanese firms keen to tap the technology. The consortium, which includes megabanks Mitsubishi UFJ Financial Group Inc (8306.T), Mizuho Financial Group Inc (8411.T) and Sumitomo Mitsui Financial Group Inc (8316.T), has been meeting regularly to study ways to build a common settlement infrastructure for digital payments.

Persons: Edgar Su, DeCurret, Leika Kihara, Krishna Chandra Organizations: REUTERS, Aozora, Internet Initiative Japan, Japan, Mitsubishi UFJ Financial, Inc, Mizuho Financial Group Inc, Sumitomo Mitsui Financial Group Inc, Thomson Locations: Tokyo, Japan

Shmyhal told a high-level roundtable to support Ukraine held during the International Monetary Fund and World Bank meetings in Marrakech, Morocco, that Ukraine's state budget deficit would be about 20% of the country's GDP this year and 21% in 2024. "We expect support from all our partners, both in equal amounts, Shmyhal said. He said the World Bank has been helping to assess recovery needs, adding that $14 billion alone would be needed for a rapid-recovery response program. Shmyhal said the key to the country's resilience has been economic reform programs, including those to fight corruption and boost digitalization. "If the right conditions are created, we estimate that as much as one-third of Ukraine's future needs could be met with private-sector financing," Banga said.

Persons: Denys Shmyhal, Shmyhal, Ajay Banga, Banga, Janet Yellen, Volodymyr Zelenskiy, David Lawder, Alex Richardson, Leslie Adler Organizations: Ukrainian, International Monetary Fund, World Bank, Bank, U.S, Treasury, Ukraine, Thomson Locations: MARRAKECH, Morocco, Ukraine, Marrakech, Russia, U.S

☆ Japan likely won't intervene to reverse yen downtrend, ex-top currency diplomat says
▼ + stars: | 2023-10-08 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

There is no set rule or shared agreement among G7 advanced nations on what kind of currency moves are defined as "excess volatility" that justify intervention, Shinohara said. "But usually, when you talk about excess volatility you have in mind a timeframe of several days or weeks," rather than several months, he said in an interview on Friday. The remarks contrast with those of incumbent top currency diplomat Masato Kanda, who said on Wednesday that steady yen falls over a protracted period could also warrant intervention. G7 and G20 major economies have a shared understanding that currency moves ought to reflect economic fundamentals, and that excess volatility was undesirable. In Japan, the finance ministry has jurisdiction over currency policy and decides whether and when to intervene.

Persons: Kim Kyung, Naoyuki Shinohara, Shinohara, Masato Kanda, Leika Kihara, Kim Coghill Organizations: National Printing Bureau, Bank of Japan, REUTERS, Reuters, International Monetary Fund, Thomson Locations: Tokyo, Japan, TOKYO, Asia

[1/2] A man walks past a signboard of Mitsubishi UFJ Financial Group and MUFG Bank at its headquarters in Tokyo, Japan April 3, 2018. Globally bonds have been heavily sold for weeks - prompting the Bank of Japan to step in to steady the JGB market - as investors reckon on interest rates around the world staying elevated. The lingering concerns, coupled with the prospect of further central bank policy tweaks, are likely to keep investors on guard against buying JGBs," he said. Even if the BOJ raises short-term rates, it will probably have to maintain the YCC framework to avoid any abrupt rise in long-term interest rates, Seki said. The BOJ will have no choice but to engage with long-term rates "because the complete removal of a target band could cause volatility in yield curve and sharp spikes in long-term interest rates," he said.

Persons: Toru Hanai, Hiroyuki Seki, Seki, Makiko Yamazaki, Ritsuko Shimizu, Leika Kihara, Muralikumar Organizations: Mitsubishi UFJ Financial, MUFG Bank, REUTERS, Rights, Bank of, Bank of Japan, Reuters, Thomson Locations: Tokyo, Japan, U.S

☆ Japan's re-defined intervention trigger may slow, but not derail, yen bears
▼ + stars: | 2023-10-06 | by ( Leika Kihara | ) www.reuters.com time to read: +5 min

[1/2] A man looks at an electric monitor displaying the Japanese yen exchange rate against the U.S. dollar and Nikkei share average outside a brokerage in Tokyo, Japan October 4, 2023. While money flow data suggest there was no intervention, the price action was enough to keep yen bears at bay. Rather, the remarks by Kanda were likely a fresh warning shot to markets that authorities could step in any time - even if yen moves were moderate, they say. Intervention isn't the best tool to arrest steady yen declines anyway, said former currency diplomat Hiroshi Watanabe. "There's no point intervening when yen moves are gradual," Watanabe told Reuters.

Persons: Issei Kato, Masato Kanda, that's, Kanda, Tokyo's, Atsushi Takeuchi, They're, Daisaku Ueno, Mitsubishi UFJ, Mitsubishi UFJ Morgan Stanley, Hiroshi Watanabe, Watanabe, Leika Kihara, Tetsushi, Shri Navaratnam Organizations: U.S ., Nikkei, REUTERS, Tokyo, Authorities, Bank of, U.S . Federal Reserve, Treasury, Mitsubishi, Mitsubishi UFJ Morgan, Mitsubishi UFJ Morgan Stanley Securities, Reuters, Thomson Locations: Tokyo, Japan, TOKYO, United States

☆ 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

☆ Japan's business mood improves, capex firm in boost to economic outlook
▼ + stars: | 2023-10-02 | by ( Leika Kihara | Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

TOKYO (Reuters) -Japan’s business sentiment improved in the third quarter, a central bank survey showed, suggesting conditions for a durable economic revival are falling into place even as a global slowdown keeps policymakers cautious about the outlook. Big non-manufacturers’ index stood at 27, up from 23, the survey showed, above a median market forecast of 24 and improving for the sixth straight quarter. The survey showed big manufacturers expect conditions to improve three months ahead, though sluggish global demand and signs of weakness in China’s economy cloud the outlook. “The tankan showed Japan is on track for a domestic-demand led growth. But analysts expect a mild contraction in the July-September quarter as sluggish global demand weigh on exports.

Persons: Maki Shiraki, ”, Marcel Thieliant, Yoshimasa Maruyama Organizations: Nissan, Co, Ltd's, EV, REUTERS, Companies, Bank of Japan, Capital Economics, Big, Nikko Securities Locations: TOKYO, Tochigi prefecture, Japan, Asia, U.S

☆ BOJ dispels view risk of loss will impede easy-policy exit
▼ + stars: | 2023-09-30 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Bank of Japan Governor Kazuo Ueda speaks at a group interview with media in Tokyo, Japan, May 25, 2023. "The objective of the Bank's monetary policy is achieving price stability, which is its mission as stipulated by law. "A central bank's ability to conduct monetary policy is not impaired by a temporary decrease in its profits and capital, provided that it conducts appropriate monetary policy," he said. Some academics have warned the BOJ's huge balance sheet will make an exit from ultra-loose policy difficult by exposing it to massive losses that could put its credibility on the line. But he has also said the BOJ will consider an exit when sustained, stable achievement of its price target is in sight.

Persons: Kazuo Ueda, Kim Kyung, Ueda, Haruhiko, Leika Kihara, William Mallard, Sonali Paul, Michael Perry Organizations: Japan, REUTERS, Bank of Japan, Japan Society of Monetary, Thomson Locations: Tokyo, Japan, TOKYO

A woman looks at items at a shop in Tokyo, Japan, March 24, 2023. The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 2.5% in September from a year earlier, against a median market forecast for a 2.6% gain. It slowed from a 2.8% increase in August but exceeded the Bank of Japan's 2% target for the 16th straight month. Analysts expect inflation to keep slowing in coming months reflecting recent declines in commodity prices and the base effect of last year's sharp rises. The inflation overshoot led the BOJ to make modest tweaks to its bond yield control policy last month, a move investors saw as a shift away from decades of ultra-loose monetary policy.

Persons: Androniki, Kazuo Ueda, Leika Kihara, Sam Holmes Organizations: REUTERS, Bank of Japan's, Thomson Locations: Tokyo, Japan, TOKYO

☆ BOJ's July debate highlights rift in view on rate hike timing
▼ + stars: | 2023-09-27 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. One member said there was "still a significantly long way to go" before the BOJ can revise its negative interest rate policy, the minutes showed. One member said inflation could overshoot expectations as a tight job market prod firms to hike pay. But the BOJ has maintained its dovish guidance on the view a premature exit from ultra-loose policy could hurt a fragile recovery, and push Japan back into economic stagnation. Reporting by Leika Kihara; Editing by Jacqueline Wong and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

Persons: Issei Kato, Kazuo Ueda, Ueda, Leika Kihara, Jacqueline Wong Organizations: Bank of Japan, REUTERS, Companies, Thomson Locations: Tokyo, Japan, Europe, TOKYO, United States

☆ BOJ may hold off on ending negative rates until April - ex-board member
▼ + stars: | 2023-09-26 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

With inflation exceeding 2% for more than a year, markets are rife with speculation the BOJ will raise short-term interest rates from the current -0.1% as early as the end of this year. Ending negative interest rates likely won't hurt the economy much as inflation-adjusted real borrowing costs will remain low, said Sakurai, a former BOJ board member who retains close ties with incumbent policymakers. "Ending negative rates will be largely a symbolic move, but the BOJ probably wants to time it very carefully," Sakurai said. Even if the central bank were to end negative rates, it will likely describe the move as a modest adjustment to the degree of monetary stimulus, he said. In July, it raised a hard cap for the 10-year yield to 1.0% from 0.5% to allow long-term interest rates to rise more freely reflecting higher inflation.

Persons: Issei Kato, BOJ Sakurai, Sakurai, Sakurai TOKYO, Makoto Sakurai, Leika, Shri Navaratnam Organizations: Bank of Japan, REUTERS, Reuters, Thomson Locations: Tokyo, Japan

☆ BOJ chief warns of highly uncertain wage, price outlook
▼ + stars: | 2023-09-25 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

The key to the outlook for monetary policy is whether strong wage growth and consumption, rather than cost pressures from rising import costs, become the key driver of inflation, Ueda said. Ueda said the BOJ was "not fully convinced" that wage hikes would keep accelerating, as many companies seemed undecided on their wage strategy for next year and beyond. That's why we are supporting demand and the broader economy with easy monetary policy," he added. While stressing the need to keep ultra-loose policy for now, Ueda said it was "extremely important" to weigh the benefits and costs of its policy. On the yen's recent falls, Ueda said the BOJ was keeping a close eye on their impact on economic and price developments.

Persons: Kazuo Ueda, Kim Kyung, Ueda, Shingo Torii, Leika Kihara, Chang, Ran Kim, Sam Holmes, Ed Osmond Organizations: Japan, REUTERS, Ueda, Bank of Japan, Panasonic, Osaka Chamber of Commerce and Industry, Thomson Locations: Tokyo, Japan, Ueda OSAKA, Osaka

The data comes hours before the Bank of Japan (BOJ) concludes its two-day policy meeting that began on Thursday. While government subsidies pushed down utility bills, prices rose for a range of food and daily necessities in a sign that steady inflation was taking hold in the world's third-largest economy. "The persistent stickiness of inflation means the BOJ will need to revise up their inflation forecasts at its October meeting," said Gabriel Ng, an economist at Capital Economics. After hitting a peak of 4.2% in January, core inflation continued to slow as the effects of last year's sharp rises in fuel and raw material prices dissipate. But some analysts say the slowdown has not been as large as expected due to steady rises in food prices, and could keep inflation above the BOJ's target longer than initially thought.

Persons: Kazuo Ueda, Gabriel Ng, Ueda, Leika Kihara, Shri Navaratnam, Sam Holmes Organizations: Bank of Japan, Capital Economics, Thomson Locations: TOKYO

☆ 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

Search resuls for: "Leika Kihara"

25 mentions found