Bank of Japan
Still No Deal to Reopen the Strait of Hormuz Yet Diplomatic Option Not Yet Abandoned
September 28, 2026
(120) Following President Trump’s “no deal” answer to Iran’s latest peace proposal, the West Texas Intermediate and Brent prices of crude oil have shot up around 4%. In turn, ten-year sovereign debt yields are up six basis points in the United States and Spain, eight bps in Italy, seven bps in France and four bps […] More
Controversial Japanese Interest Rate Decision
September 18, 2026
After deliberating over two days for nearly five hours, the Bank of Japan Board rendered a 25-basis point hike of their short-term interest rate to 1.25%. The decision comes just three months after the previous increase and raises the cumulative change since last December to 75 basis points. The rate hadn’t been as high as […] More
Widely Awaited Bank of Japan Interest Rate Hike Comes With Mixed Baggage and Sends Yen Lower
September 18, 2026
After deliberating over two days for nearly five hours, the Bank of Japan Board rendered a 25-basis point hike of their short-term interest rate to 1.25%. The decision comes just three months after the previous increase and raises the cumulative change since last December to 75 basis points. The rate hadn’t been as high as […] More
WTI Oil Back Above $85, Signs of Higher Inflation, and Japanese Intervention But No Rate Hike
July 31, 2026
What started as a war between the U.S. and Israel on the one hand and Iran on the other has broadened into a regional conflict that threatens to engulf Europe with a triple shipping choke-hold at the Strait of Hormuz, Bab el-Mandeb Strait, and Suez Canal. The price of West Texas Intermediate crude oil climbed […] More
Bank of Japan Lifts Short-Term Interest Rate in Expected Move
June 16, 2026
The Bank of Japan Board’s 25-basis point interest rate hike had been anticipated. Governor Ueda was absent from the five hour nine minute monetary policy review over two days because he’s been hospitalized for an infected liver cyst. Deputy Governor Himino chaired the discussion, which ended with one dissent against the hike that was cast […] More
Post-Deal Optimism Holding
June 16, 2026
Much still remains unknown regarding the future evolution of U.S.-Iran talks, but yesterday’s rally in equities and decline of long-term interest rates following the announced interim deal has persisted. Stock markets this Tuesday rose 4.1% in Indonesia, 2.1% in South Korea, 0.9% in Taiwan but just 0.1% in Japan where Bank of Japan officials hiked […] More
A Fresh Upturn in Global Energy Prices as Trump is Said to Turn Down Iran’s Latest Deal Offer
April 28, 2026
The price West Texas Intermediate oil, now at $100.17 per barrel, is almost 4% above Monday’s closing level. Iran’s proposal, which addressed reopening the Strait of Hormuz but defers discussion of its nuclear development, never realistically had much chance of gaining Trump’s favor. The U.S. position has conditioned any reopening of the Strait on steps […] More
Middle East Takes a Turn for the Worse, Forcing Monetary Authorities Around the World to Wait and See
March 19, 2026
The Strait of Hormuz remains essentially closed to shipping traffic, and Israel and Iran have escalated the race to destroy Middle Eastern energy facilities as thoroughly as possible. Brent crude briefly hit $119 per barrel, and West Texas Intermediate continues to hover a bit above $97. The escalating conflict has ripped up the script on […] More
Davos Aftermath
January 23, 2026
Today was the last day of the annual World Economic Forum in Switzerland. While there been considerable relief that President Trump lifted his threat of a new round of sharp tariff hikes against Europe, a sour taste was left by the possibility that NATO unity has crossed a line from which it may never fully […] More
Japan and China Officials Playing Closer Attention to Their Currencies
December 29, 2025
(159) An abbreviated summary of this month’s Bank of Japan Board meeting that lifted the short-term policy interest rate to a 3-decade high of 0.75% states that ” business sentiment has not been weak” and predicts that “next year’s wage hikes at large firms with labor unions are likely to be at least around the […] More
