Preview: Bank of Japan Unlikely to Begin Unwinding Large-Scale Easing Until It Can Clearly Foresee Sustained Growth in Wages, Service Prices in Fiscal 2024
By Max Sato (MaceNews) – The Bank of Japan board is widely expected to retain its guidance in a unanimous vote at its Jan. 22-23 meeting that the bank will “patiently continue with monetary easing” in order to “achieve the price stability target of 2% in a sustainable and stable manner, accompanied by wage increases.” […]
Bank of Japan December Meeting Summary: Wait to See Signs of Sustained Wage Hikes in Fiscal 2024 Before Considering Rate Hike
–Members Agree BOJ Needs to Maintain Easing to Support Positive Wages-to-Prices Cycle –A Few Members Warn Against Being Complacent about Upside Risks to Inflation By Max Sato (MaceNews) – Bank of Japan board members argued that they should wait until next spring (from March to May) to confirm whether annual labor talks will lead to […]
BOJ Keeps Easing Stance Under Yield Curve Control Framework After Making It More Flexible in Oct, July
–BOJ Repeats: To ‘Patiently’ Pursue Stable 2% Inflation –BOJ Maintains Negative Short-Term Rate, Zero Long-Term Rate; Keeps 1% Loose Upside Limit on 10-Year JGB Yield By Max Sato (MaceNews) – The Bank of Japan said Tuesday its policy board decided unanimously, as widely expected, to maintain its seven-year-old yield curve control framework and retain its […]
Analysis: Bank of Japan Cautious About Lifting Negative Short-Term Rate Target Until Confirming Path to Higher Wages in April
By Max Sato (MaceNews) – Bank of Japan policymakers are expected to maintain the current easing stance for now as they are likely to refrain from raising interest rates at least until April, when they may be able to see a clearer sign that wages will continue rising substantially in the next fiscal year. In […]
BOJ December Quarter Tankan: Major Manufacturers’ Sentiment Posts 3rd Straight Rise on Improved Supply Chains but Outlook Cautious on High Costs, Labor Shortages
–Major Non-Manufacturers’ Confidence Up for 7th Straight Quarter –Many Sectors Expect Pullback in March in Payback for Recent Improvement –Large Firms’ Combined Fiscal 2023 Capex Plans Revised Down Only Slightly; Small Firms Raise Theirs Further By Max Sato (MaceNews) – Confidence among manufacturers and non-manufacturers in Japan all picked up more than expected in December […]
Preview: BOJ December Tankan to Show Major Manufacturer Sentiment Up for 3rd Straight Quarter on Improved Supply Chains, Lower Import Costs
–Major Non-Manufacturer Confidence Seen Unchanged; Inbound Spending High but Labor Shortages Bite –Firms in Many Sectors Likely to Be Wary of Near-Term Outlook Amid Slowing Global Growth –Large Firms Seen Revising Down Fiscal 2023 Capex Plans; Small Firms to Raise Theirs Further By Max Sato (MaceNews) – The Bank of Japan’s quarterly Tankan business survey […]
Bank of Japan October Meeting Summary: Must Watch Pay Hikes for Fiscal 2024 Onward as Key to Positive Wages-to-Inflation Cycle
–Members Agree Central Bank Needs to ‘Patiently’ Continue with Monetary Easing for Now Amid High Uncertainty By Max Sato (MaceNews) – Bank of Japan board members stressed that they need to closely monitor wage negotiations between major firms and their labor unions that take place in the early parts of next year as they […]
BOJ Makes 1% Upper End of 10-Year JGB Yield Flexible ‘Reference,’ Not Definite Line to Defend, But Keeps Official Target at ‘Around Zero’
–Vote on Making Yield Curve Control More Flexible Is 8-to-1 –Board Member Nakamura Dissents Again, Should Wait Until Bank Can Confirm Firms’ Earning Power Is Up –BOJ Board Keeps Basic Easing Stance Unanimously To ‘Patiently’ Pursue Stable 2% Inflation By Max Sato (MaceNews) – The Bank of Japan said Tuesday its policy board decided in […]
Press Report: Bank of Japan Likely to Consider Allowing 10-Year Bond Yield to Trade Above 1% in Flexible Market Operations
By Max Sato (MaceNews) – Bank of Japan policymakers are likely to consider making the yield curve control framework even more flexible at their meeting this week by allowing the 10-year bond yield to trade above 1% “to some extent,” the upper end of its range the BOJ expanded in July, the Nikkei newspaper reported […]
BOJ September Meeting Summary: Some Optimistic About Sustained Wage Hikes, Inflation Toward Stable 2%; Others More Cautious
–Members Agree Easing Should Continue to Support Wage Hikes but Some Also Call for Review of Easing Tools By Max Sato (MaceNews) – Some Bank of Japan board members predicted that wages may see a sustained hike in the next fiscal year starting in April, supporting a path toward stable 2% inflation, but others pointed […]