Bank of Japan

Bank of Japan Elects to Do Nothing New after Mid-June Meeting

June 16, 2016

The central bank’s inaction elicited a very negative market reaction that sent Japan’s stock market down 3.1%, pinned the JGB yield at negative 0.21%, and lifted the yen to a multi-year high against the dollar of 103.55.  The released statement of the Policy Board after deliberations totaling 4 hours and 9 minutes over two days […] More

Another Bank of Japan Surprise

April 28, 2016

The BOJ Board did not change any policy settings at this week’s meeting, surprising analysts and investors who almost universally were anticipating the unveiling of new stimulus.  Ever since a Japanese discount rate hike on Christmas Day 1989, I’ve learned to expect anything from Japan’s central bank.  It is ingrained in the institutional culture there […] More

Bank of Japan

March 15, 2016

The nine policy board members talked for five hours forty four minutes of talks over two days and in the end decided not to change the quantitative monetary stimulus settings nor the -0.1% policy interest rate.  Quantitative stimulus was introduced in April 2013 and modified in October 2014.  A three-tiered rate structure was adopted after […] More

Fresh Gloom Rekindles Risk Aversion

March 15, 2016

The Bank of Japan did not augment policy stimulus but did downgrade exports and residential construction and also observed that expected inflation has slipped.  The yen advanced 0.7% against the dollar and euro overnight in response. West Texas Intermediate crude oil fell 2.0% overnight and has faded slightly more than 5% over the past two […] More

Bank of Japan Introduces Negative Interest Rate to its Deflation-Fighting Toolbox

January 29, 2016

The five hour seventeen minute Policy Board meeting over two days surprised and electrified world financial markets with a statement that by a 5-4 vote added a negative interest-rate dimension to its nearly three-year-long experiment with quantitative and qualitative monetary easing.  Reserves held by the BOJ for financial institutions will from mid-February be earmarked for […] More

Japanese Central Bank Drops a Bombshell of a Surprise

January 29, 2016

The Bank of Japan adopted a negative interest rate after repeated officials comments from central bank officials earlier that they weren’t contemplating such. In response, Japanese share prices advanced 2.8% and the yen has fallen 2.2% against the dollar and 0.9% relative to the euro.  The 10-year Japanese JGB yield declined 12 basis point to […] More

Bank of Japan

December 18, 2015

After a Board meeting of five hours 36 minutes over two days that wasn’t expected to producer any policy changes, a statement was released that pushed out the targeted average maturity of the bank’s JGB portfolio to 7-12 years from 7-10, launched a second EFT purchase program amounting to slightly less than $2.5 billion per […] More

Bank of Japan Retains Status Quo in Penultimate Board Meeting of 2015

November 19, 2015

The one and only tweak of quantitative stimulus occurred at the end of October 2014, when the Board raised the targeted annual growth in Japan’s monetary base and planned asset purchases to JPY 80 trillion.  Policymakers have managed to stick to those parameters and reaffirmed them at the November policy meeting.  At the prior meeting […] More

Signals from the Fed, Bank of Japan and ECB

November 19, 2015

FOMC minutes from the October meeting released Wednesday afternoon showed most members inclined to hike the federal funds rate in December but also underscored an intention to normalize policy gradually thereafter and spreading doubts that the peak can lie much above 2%. A five hour 20 minute meeting of the Bank of Japan Board over […] More

Bank of Japan Fails to Change Policy

October 7, 2015

Monetary officials had not been expected to enhance quantitative stimulus at this week’s Board meeting.  Markets have instead been focused on the second October meeting on the 30th, wondering if lightning might strike twice.  Two meetings are held in April and October, the second being meant for the unveiling of a comprehensive review of economic […] More