JN BOJ Outlook Report

The Bank of Japan is expected to maintain ultra-low interest rates on Thursday and signal a cautious approach to rolling back its massive monetary stimulus, as political uncertainty and jittery markets cloud the outlook. The ruling coalition's loss of a majority in a weekend election has heightened concerns about policy paralysis, raising the hurdle for additional rate hikes, analysts say. The BOJ is likely in no rush to push up borrowing costs with inflation showing few signs of spiking and Japan's economic recovery fragile. But ...

The Bank of Japan holds a two-day policy meeting concluding on Oct. 31, days after a general election where new Prime Minister Shigeru Ishiba faces a key test on his agenda to prop up wages and revitalise the country's weak regional economies. Here is a guide on what to expect and why the BOJ's rate review matters: Is BOJ Going to Raise Interest Rates? The BOJ ended negative interest rates in March and raised its short-term policy target to 0.25 per cent in July. It has signaled readiness to hike again, once the board has enough ...

The dollar rose against all the G10 currencies last week, but it was not because of higher US rates. In fact, the 10-year US Treasury yield fell for the first time in five weeks. The two-year yield did not rise for the first time in three weeks. Rather than an increase in US rates, several other countries' rates fell. The result was that the US 2-year premium over Germany rose for the fourth consecutive week and is now the most since June. The US premium over Canada rose for the third week and the sixth week in the past seven. It is ...

Bank of Japan officials see little need to rush into raising interest rates this month while they remain on track to hike at a later stage with inflation staying in line with forecasts, according to people familiar with the matter. Officials see only a small risk of prices significantly outpacing the central bank’s quarterly projections set out in July, reducing the need to act quickly, the people said. The BOJ also sees a need to monitor the US economy and the potential economic and market impact of the US election next month among ...

The Bank of Japan is expected to detail plans to taper its huge bond buying on Wednesday and debate whether to raise interest rates, signalling its resolve to steadily unwind a decade of massive monetary stimulus. The decision comes as the U.S. Federal Reserve looks to cut interest rates, possibly as early as September, reversing an aggressive rate-hike cycle that drove up the dollar and caused a painful yen sell-off for Japan. At the two-day meeting ending on Wednesday, the BOJ will decide on a quantitative tightening (QT) plan that ...