BOJ
Data Deluge and Bank of Japan Returns to ZIRP
October 5, 2010
The Bank of Japan cut the interest rate target on overnight uncolateralized money to 0-0.25% but in fact virtually zero (ZIRP). An asset purchase program was also established with the intent of driving long-term interest rates lower. Officials now see a slower pace of recovery and a delayed return to a path of sustainable growth […] More
Fresh Concerns about Ezone Peripheral Economies
September 7, 2010
The euro fell 0.9% against the dollar. Stocks have declined 1.4% in Madrid, 1.2% in Paris, 1.0% in Zurich, 0.9% in London and 0.7% in Frankfurt. Ten-year sovereign bund and gilt yields are six and four basis points lower. Bond spreads between Euroland’s peripherals and Germany have widened to more than 935 basis points in […] More
Bank of Japan Preview
September 6, 2010
The regularly scheduled monthly meeting of the central bank Policy Board is today and Tuesday. However, an unscheduled meeting just a week ago caved into to mounting political pressure and took the comparatively modest step of introducing a JPY 10 trillion, six-month cheap fixed-interest loan facility for banks to complemented already existing 3-month facilities. JPY […] More
A Modest BOJ Stimulus
March 17, 2010
After meeting for five hours and 57 minutes over two days, the Bank of Japan Policy Board took two votes that resulted in A unanimous 7-0 decision to leave the uncollateralized overnight rate at 0.1%. Such has been 0.1% since December 2008, merely 40 bps below the prior cyclical high of 0.5%. A 5-2 vote, […] More
Stocks Rally
March 17, 2010
Stocks advanced 1.2% in Japan, 2.2% in China, 2.1% in South Korea, 3.3% in Indonesia, 1.8% in Thailand, 1.7% in Hong Kong and 1.2% in Australia. In Europe, the German Dax is 0.6% firmer, and the Paris Cac and British Ftse are each 0.4% higher. Currency movements also reflect a greater preference for risk in […] More
Bank of Japan Preview
March 16, 2010
Japan’s Democratic Party government wants the Bank of Japan to take more forceful action to resist deflation. Core and headline consumer prices each fell 1.3% in the year to January. Nominal GDP was 8.0% lower last quarter than two years earlier, and the GDP price deflator contracted 2.8% between 4Q08 and 4Q09. Bank loans are […] More
