首页 Stocks Forefront 正文

Bank of Japan Governor: Promising to "patiently" maintain ultra loose monetary policy

xnyykd222
1326 0 0

On October 20th, Bank of Japan Governor Kazuo Shibata stated that the Bank of Japan will "patiently" maintain ultra loose monetary policy and respond "flexibly" to economic, price, and financial development. He warned that there is a high level of uncertainty in the future.
He also stated that the Japanese economy is recovering moderately, and the impact of supply restrictions is gradually fading, offsetting the impact of global demand slowdown on exports.
He stated that as cost driven pressures dissipate, inflation may slow down, but thereafter, due to economic strength and changes in corporate wage setting behavior, inflation may accelerate again.
However, Kazuo Ueda stated that the Bank of Japan must closely monitor the development of finance and currency markets, as well as their impact on the Japanese economy, as the outlook is highly uncertain.
Continue to 'release pigeons'
The Bank of Japan has downplayed the possibility of gradually withdrawing from large-scale stimulus measures in the near future, stating that the recent cost driven price increases need to be transformed into demand driven inflation before the Bank of Japan will consider raising interest rates.
By patiently maintaining loose monetary policy, the Bank of Japan will seek to achieve a sustained and stable inflation target of 2% while also achieving wage increases, "said Kazuo Ueda
Previously, in September, Kazuo Sobata told business leaders in Osaka that the uncertainty of wages and inflation was high, and the goal of achieving a 2% inflation rate and wage growth had not yet "emerged". He reiterated that the central bank would patiently continue to implement loose monetary policy within the current yield curve control framework.
Core inflation slowing down
Data released today shows that Japan's national core consumer price index (CPI) rose 2.8% year-on-year in September, marking the first time since August 2022 that it has dropped below 3%, a slowdown from the 3.1% increase in August.
The Bank of Japan will review these indicators at a two-day policy meeting that ends on October 31st, at which time it will release new quarterly economic growth and price expectations.
Although inflation weakened in September, we believe that by the end of next year, inflation will only be lower than the Bank of Japan's 2% target, "said Marcel Thieliant, Asia Pacific head of Kaitou Macro
Previously, the market widely speculated that the Bank of Japan would soon end the control of negative short-term interest rates and yield curves (i.e., keep the yield target of 10-year treasury bond bonds near 0%) in response to the expanding inflationary pressure.
The widening interest rate gap with the United States has weakened the yen, pushed up Japanese import prices, and exacerbated inflation that has exceeded the central bank's 2% target since April 2022. All of this has intensified speculation that the Bank of Japan may soon withdraw from ultra-low interest rates.
However, this is still shrouded in uncertainty, with increasing signs indicating that the Bank of Japan may raise inflation expectations by the end of this month, but it is difficult to determine whether this will prompt the Bank of Japan to make policy adjustments in the short term.
The Japanese yen may experience a huge shock
Tsutomu Soma, a bond and foreign exchange trader at Monex, stated that market volatility may intensify before the Bank of Japan's policy meeting at the end of this month.
On September 22, the Bank of Japan announced that it would continue to implement the ultra loose monetary policy, maintain the short-term interest rate at the level of negative 0.1%, and maintain the long-term interest rate at about zero by purchasing long-term treasury bond. On September 26th, the Japanese yen exchange rate in the Tokyo foreign exchange market fell to 149.18 yen to the US dollar during the day, setting the lowest level since October 2022.
On October 3rd, the Japanese yen hit 150.16 against the US dollar, then suddenly surged to 147.43, sparking speculation about the government's support for the yen. Since then, the yen exchange rate has remained relatively stable, but last weekend, when tensions in the Middle East intensified, the butterfly spread began to rise.
Option traders are preparing for the turbulence in yen trading. As people become increasingly concerned that the Japanese authorities will intervene to support the weakening yen, exchange rate fluctuations may intensify.
The one month USD/JPY butterfly option position hit its highest level since March on Wednesday. The butterfly option position reflects investors' views on the possibility of significant fluctuations in the currency during this period. This reflects the market's view that after maintaining a narrow range in the past few weeks, the yen may enter a period of turbulence.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   知名做空机构香橼研究(Citron Research)周四(11月21日)在社交媒体平台X上发布消息称,该公司已决定做空“比特币大户”微策略(Microstrategy)这家公司,并认为该公司已经将自己变身成为一家比特币投资基金 ...
    caffycat
    昨天 11:18
    支持
    反对
    回复
    收藏
  •   每经AI快讯,11月20日,文远知行宣布旗下自动驾驶环卫车S6与无人扫路机S1分别在新加坡滨海湾海岸大道与滨海艺术中心正式投入运营。据介绍,这是新加坡首个商业化运营的自动驾驶环卫项目。 ...
    star8699
    3 天前
    支持
    反对
    回复
    收藏
  •   上证报中国证券网讯(记者王子霖)11月20日,斗鱼发布2024年第三季度未经审计的财务报告。本季度斗鱼依托丰富的游戏内容生态,充分发挥主播资源和新业务潜力,持续为用户提供高质量的直播内容及游戏服务,进一步 ...
    goodfriendboy
    3 天前
    支持
    反对
    回复
    收藏
  •   人民网北京11月22日电 (记者栗翘楚、任妍)2024广州车展,在新能源汽车占据“半壁江山”的同时,正加速向智能网联新能源汽车全面过渡,随着“端到端”成为新宠,智能驾驶解决方案成为本届广州车展各大车企竞 ...
    3233340
    昨天 17:06
    支持
    反对
    回复
    收藏
xnyykd222 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    0