Bank of Japan

Bank of Japan Maintains Status Quo

December 21, 2017

The Bank of Japan has a stimulative monetary policy that goes by the title of “quantitative and qualitative easing(QQE) with yield control.” The unchanged settings at the final scheduled policy review of 2018 A Policy-Balance interest rate of negative 0.1% A target 10-year JGB yield of “around 1.0%” JGB purchases of roughly 80 trillion yen […] More

Tax Bill Aftermath

December 21, 2017

The most prominent market reaction to the U.S. tax overhaul has been the rise in long-term interest rates, although the U.S. 10-year Treasury yield settled back two basis points in overnight futures trading. The 10-year gilt and 10-year German bund yields rose another 2 and 1 basis points. Congress is not trying to avert a […] More

Bank of Japan Keeps Existing Policy Settings

October 31, 2017

The Bank of Japan Board released both a statement and a fresh quarterly Outlook for Economic Activity and Prices after its latest policy review, a two-day meeting that consumed a total four hours seven minutes of discussion. The Outlook is the more informative document as it provides extensive background regarding current economic conditions, the baseline […] More

Mixed News at Month End

October 31, 2017

The dollar traded up by 0.6% against the kiwi, 0.4% relative to the Swiss franc and Australian dollar, and 0.2% vis-a-vis the yen, euro and loonie. The dollar is unchanged against sterling and 0.3% and 0.2% softer against the peso and yuan. In stock market action, share prices rose 0.9% in South Korea and 0.5% […] More

Bank of Japan

September 21, 2017

Following four hours and 52 minutes of deliberation over two days, the Bank of Japan’s nine-person Board agreed to leave policy as is, with a -0.1% marginal short-term interest rate, a target of “around zero percent” in the 10-year JGB sovereign debt yield, and continuing quantitative stimulus for “as long as it is necessary for […] More

Bank of Japan: Same old, Same old

July 20, 2017

Japanese monetary policy, although institutionally independent, suffers from chronically rigid thinking. The latest policy review produced 1) unchanged policy settings,2) another 7-2 vote with Kiuchi and Sato objecting to the majority’s policy preference for the same reasons that they have dissented at countless prior meetings, and 3) yet another outward push in the collective projected […] More

Bank of Japan

April 27, 2017

After meeting for five hours and sixteen minutes over two days, the BOJ Policy Board released a monetary policy statement that reads the same verbatim as the prior March document including footnoted text explaining the dissenting views of committee hawks Sato and Kiuchi. A new quarterly Outlook for Economic Activity and Prices was published concurrently […] More

Bank of Japan Retains Existing Policy

March 16, 2017

After four hours 33 minutes of deliberations on Wednesday and Thursday, the BOJ stuck with all parameters of their policy of “quantitative monetary easing with yield curve control.” QQE was introduced in April 2013 and augmented in October 2014. A negative 0.10% marginal rate on balances held by banks at the BOJ was adopted in […] More

U.S. Labor Statistics, Service-Sector PMIs, and a Focus on Some Central Banks

February 3, 2017

The dollar rose modestly overnight ahead of the U.S. jobs data, gaining 0.4% against the kiwi, 0.3% versus the yen, Swissie and sterling, 0.2% relative to the euro, loonie and Australian dollar, and 0.1% against the Mexican peso. China reopened after a week celebrating the Lunar New Year. The dollar fell 0.2% against the yuan, […] More

Bank of Japan Review

January 31, 2017

By another 7-2 vote with Kiuchi and Sato again dissenting, monetary policymakers voted not to change its interest rate targets, the size of quantitative easing, the medium-term inflation target, guidance governing future policy decisions, or its assessment of Japanese growth and inflation conditions and prospects. This result was expected. The statement on monetary policy¬†retains a […] More