Preview: BOJ March Quarter Tankan to Show Business Sentiment Slightly Down or Flat amid Uncertainty over Trump Tariffs, Elevated Consumer Inflation
By Max Sato (MaceNews) – The Bank of Japan’s quarterly Tankan business survey is forecast to show confidence among manufacturers slipped in the March quarter in the face of stiff tariffs on U.S. imports of metals and vehicles as well as President Trump’s plans to slap “reciprocal tariffs” on imports from global trading partners. China’s […]
Analysis: Bank of Japan Taking Another Step Forward but Still Halfway Toward Brave New World of Paying Interest on Loans
By Max Sato (MaceNews) – Bank of Japan policymakers have taken another step forward with their third rate hike this cycle, but they are still only hallway through their mission of hauling the economy from the lukewarm super-low borrowing costs toward the brave new world of paying normal levels of interest on loans. At its […]
BOJ Governor Ueda: Japan Economy on Track Toward Higher Interest Rates but Central Bank Needs More Confidence in Sustained Wage Hikes
–Ueda: Bank May Get Enough Data in March or April to Decide on Next Rate Hike By Max Sato (MaceNews) – Bank of Japan Governor Kazuo Ueda said Friday that the bank’s policymakers may receive clearer data and information in March or April that would allow them to decide confidently whether to go ahead with […]
Japan Q3 GDP Slows on Capex, Public Works Pullbacks as Expected, Propped Up by Downward Revision to Q2 Growth
–Q3 GDP +0.2% Q/Q, +0.9% Annualized Vs. Median Forecasts of +0.2%, +0.6%–External Demand’s Unexpected Dive Buoyed by Surprisingly Firmer Consumption Despite High Costs, Earthquake, Typhoons–Domestic Demand Pushes Up GDP by 0.6 Point, Net Exports Slashes Growth by 0.4 Point By Max Sato (MaceNews) – Japan’s third quarter economic growth slowed to 0.2% on quarter, on […]
Japan Government Slightly Upgrades Its View on Economic Recovery after BOJ Conducts 2nd Rate Hike in July
By Max Sato (MaceNews) – Japan’s government upgraded its overall economic assessment for the first time in six months, noting consumer spending is supported by wage hikes and temporary income tax credits, but the change in wording is subtle and it continues to say the economy is recovering “moderately.” In its monthly report for August […]
Bank of Japan Board Members See Upside Risks to Inflation Outlook at July Meeting; Some Note Low Real Rates, Others Warn of Weak Consumption
–One Member Estimates Minimum 1% Neutral Rate, Calls for Gradual Pace of Rate Hikes By Max Sato (MaceNews) – Bank of Japan board members called for a close watch on upside risks to their inflation outlook amid labor shortages and higher import costs, with a majority seeking to justify a follow-up interest rate by pointing […]
Bank of Japan Hikes Overnight Rate Target to 0.25% from Range of 0% to 0.1% in 7 to 2 Vote
–BOJ Releases Specific Plans to Trim its Monthly JGB Purchases to Y3 Trillion from Y6 Trillion by end of Q1 2026–BOJ Governor Ueda: Raised Rates Because Economy, Prices Have Been on Track–Ueda: Weak Yen Impact on Prices ‘Not Necessarily Biggest Reason’ for Rate Hike By Max Sato (MaceNews) – The Bank of Japan said Wednesday […]
Preview: Bank of Japan Expected to Keep Rate Target This Week, Seek Rate Hike in September if Data Shows Wage Hikes Spreading to Smaller Firms, Pushing Up Weak Services Costs
By Max Sato (MaceNews) – The Bank of Japan board is widely expected to maintain its policy stance at its two-day meeting this week and wait until its next meeting on Sept. 20-21 to follow up on its first rate hike in 17 years in March by raising the overnight interest rate target to 0.25% […]
Japan Government Keeps Its View on Economic Recovery amid Wage Hikes, Warns of Drag from High US, European Rates, China’s Real-Estate Woes
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy is recovering “moderately” and is likely to stay on course as many firms are raising wages at a higher pace to secure workers and although exports are now largely flat. In its monthly report released Thursday by the Cabinet Office, the […]
Ex-BOJ’s Momma Sees BOJ Cautious About Rate Hike Timing amid Slow Services Price Rise; Not in Position to Act on Weak Yen
–Momma Expects BOJ Rate Hikes in September, January but Warns of Economic Uncertainty–Momma Estimates BOJ’s Own Measure of Underlying Inflation at 1.5%, Still Below 2% Target–Momma: Central Banks Alone Cannot Anchor Inflation; Need Fiscal, Tax Policy Backup for Wealth Redistribution By Max Sato TOKYO (MaceNews) – The Bank of Japan will remain cautious about following […]