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Bank of Japan keeps interest rates extremely low, guiding dovish policy According to Reuters



© Reuters. FILE PHOTO: A man walks past the Bank of Japan building in Tokyo, Japan January 15, 2018. REUTERS / Kim Kyung-Hoon / File Photo

(Reuters) – The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, reassuring markets that they will continue to swim against a global wave of central banks. tighten monetary policy to combat high inflation.

Here are some analysts’ views on the market’s moves and reactions:

SHIGETOSHI KAMADA, GENERAL Director – RESEARCH DEPARTMENT, TACHIBANA SECURITIES, TOKYO

“The results were in line with our expectations. It is more obvious that the Bank of Japan will continue to commit to supporting the economy. The yen fell to 145 yen against the dollar for a while (later) Announcement) Unstable Yen moves increase volatility in Japanese stocks Even if some companies benefit from weak yen, some companies are affected by rising costs. Overall this would be a concern.

“For some time to come, the move by Wall Street will remain the main market signal for the Japanese stock market.”

HIROAKI MUTO, ECONOMY, SUMITOMO LIFE INSURANCE COMPANY, TOKYO

“The BOJ is aware that an announcement like this will inevitably send a weak yen beyond 145 per dollar.

“Despite the statement saying ‘we must be on the lookout for currency and financial market moves’, looking at how the BOJ communicates, it doesn’t seem like they’re taking that seriously. think a weak yen beyond 145 is not a bad thing that will bring negative effects to the economy.”

TAKESHI MINAMI, Chief Economist, NORINCHUKIN RESEARCH INSTITUTE, TOKYO

“While the monetary policy decisions of the US and Japan were both as expected, the increase in US interest rates actually weakened the yen somewhat. That trend is likely to continue.

“The divergence in US and Japanese monetary policy has caused the yen to depreciate….Unless US interest rates peak, there won’t be any relief in the face of downward pressure and interest rates. increase in the yen.

“It is true that the Japanese economy is weakening…. BOJ was right to maintain the status quo, considering the risk posed by a rate hike and the harm done by current conditions.”

SAKTIANDI SUPAAT, LEADER OF FX STATEMENT & STRATEGY, MAYBANK, SINGAPORE

“I think the next level at 147 is a possibility. Going forward, the weakening of the Yen, I think it is built relative to the dollar, especially with the exchange rate differential being a single one. in great motives.

“Eventually, an intervention may come. If the speed is too fast towards 147 and beyond, I think the intervening layer will come. Verbal warning has arrived, rate check has arrived, level has arrived. The next step will certainly be intervention.”

YASUNARI UENO, Mature Market Economist, MIZUHO SECURITIES, TOKYO

“The BOJ’s decision can be factored into the fact that the Fed’s overnight announcement of a rate hike of 0.75% caused little reaction in the money markets. As it turns out, the decisions of both banks. Central banks are all affected by the money market.”

“We’re closely watching what Kuroda has to say about the recent strong yen weakness. He has said less of any value in the weak yen lately because of the consideration of the strong yen.” public sentiment towards the rising cost of living.”

“Kuroda is likely to highlight concerns about the impact of a weak yen on the economy, although he will avoid commenting directly on monetary policy under the Treasury’s jurisdiction, not the BOJ.”



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