BOJ Keeps Policy Unchanged After Fed Adds Dovish Tint to Outlook
Thursday, 20 December 2018 10:12 WIB | FISCAL & MONETARY |Bank of JapanBOJ

The Bank of Japan left its stimulus settings unchanged at its final policy meeting of the year, as risks to inflation mount and just hours after the Federal Reserve signaled a slightly more dovish rate path ahead.

The BOJ left its yield curve control program and asset purchases unchanged, the central bank said in a statement Thursday, a result predicted by all 49 economists surveyed by Bloomberg.

Governor Haruhiko Kuroda faces a deteriorating environment with inflation only halfway to the BOJ™s 2 percent goal. With oil prices tumbling, economists see it falling toward zero in the year ahead. Slowing growth in China, the U.S.-China trade war and a disruptive Brexit could all hit Japan™s export-dependent economy, which has contracted in two of the past three quarters.

Kuroda has a news conference scheduled for 3:30 p.m. in Tokyo. While he may note rising global risks, he™ll need to strike a balance. Ringing an alarm could prompt calls among some policy makers for additional stimulus, and the BOJ is thought to have few options left.

The risks are reflected in financial markets. Japan™s Topix stock index hit an 18 month-low on Wednesday, while benchmark 10-year bond yields this week fell to 0.01 percent, the lowest since September 2017.

While some BOJ officials are said to be fine with yields hitting zero percent or below, sub-zero yields for an extended period would again elevate concerns about profits at Japanese banks. Eroded bank profitability was a key reason the BOJ introduced yield curve control in 2016.

Source : Bloomberg

RELATED NEWS

Fed Makes Second Straight Rate Cut, Splits on Further Action
Thursday, 19 September 2019 01:20 WIB

Federal Reserve policy makers lowered their main interest rate for a second time this year while splitting over the need for further easing, caught between uncertainty over trade and global growth and a domestic economy that's holding up well. œ Although household spending has been rising at a st...

RBA Sees Risk of Property-Price Spike as House-Building Dwindles
Tuesday, 17 September 2019 09:03 WIB

Australia's central bank said there's potential for an upswing in home prices as dwelling construction weakens, while reiterating it's prepared to lower interest rates further. In minutes of its Sept. 3 policy meeting released in Sydney Tuesday, the Reserve Bank also noted that "the upward trend in...

ECB Cuts Rates, Restarts QE to Fight Slowdown as Draghi Era Ends
Thursday, 12 September 2019 19:18 WIB

The European Central Bank cut interest rates further below zero and said it™ll resume bond purchases as President Mario Draghi overcame critics of his stimulus policies to make a final run at reflating the euro-area economy. The Governing Council reduced the deposit rate to mi...

Powell says August job report is sign of continued strength in labor market, doesn't see a recession
Saturday, 7 September 2019 01:23 WIB

Federal Reserve Chairman Jerome Powell said Friday afternoon that the most recent monthly gauge of the U.S. labor market fit into an overall picture of a healthy jobs market and economy. In a question-and-answer session in Zurich, Powell said the outlook for the economy remains favorable, describin...

Carney speech: Worst-case Brexit scenarios now less severe than 2018
Wednesday, 4 September 2019 20:51 WIB

While testifying before the Treasury Committee as part of the Bank of England (BOE) inflation report hearings, Governor Mark Carney said that their worst-case Brexit scenario was less severe than last year's forecast and added that the worst-case Brexit outcome was now expected to cause a 5.5% drop ...

ANOTHER NEWS
Hong Kong Shares Fall For Third Day
Thursday, 19 September 2019 03:32 WIB Hong Kong stocks finished Wednesday with losses, extending a sell-off to a third day as traders fret over the impact of protests on the city, while they are awaiting a key Federal Reserve policy decision later in the day. The Hang Seng Index eased...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.