Bank of Japan Maintains Status Quo, Core Inflation Forecasts Trimmed

The Bank of Japan at its January monetary policy meeting maintained existing policy as widely expected. The BoJ kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. Previously the BoJ adjusted the settings by shifting the hard ceiling from 0.50% to 1.00% in the yield curve control band of +/- 0.50%. No change to core-core inflation forecasts, but core inflation forecasts were trimmed. Bank of Japan Governor Ueda’s press conference dis … Continue reading “Bank of Japan Maintains Status Quo, Core Inflation Forecasts Trimmed”

Bank of Japan Governor Kazuo Ueda Leaves Options Open, Will Give No Preemptive Warnings

Bank of Japan Governor Kazuo Ueda was stoic in declaring the BOJ is to keep its options open at the follow up press briefing after the central bank’s two-day meeting. Perhaps in deference to the Fed and ECB telegraphing intentions he added that policymakers were unlikely to give an explicit warning of an impending rate hike. “There isn’t much likelihood of us suddenly announcing that we’ll raise rates a month in advance,” Ueda said. Earlier the Bank of Japan maintained … Continue reading “Bank of Japan Governor Kazuo Ueda Leaves Options Open, Will Give No Preemptive Warnings”

Bank of Japan Maintains Stance Leaves Negative Rates and YCC 1% Ceiling Rate Unchanged

The Bank of Japan at its December monetary policy meeting maintained existing policy as widely expected. The BoJ kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. Previously the BoJ adjusted the settings by shifting the hard ceiling from 0.50% to 1.00% in the yield curve control band of +/- 0.50%. The yen weakened, a move higher for yen crosses. Japan’s currency fell as much as 1.3% to a one-week low … Continue reading “Bank of Japan Maintains Stance Leaves Negative Rates and YCC 1% Ceiling Rate Unchanged”

Yen Rallies After Japan’s 10-year Government Bond Yield Surges on BOJ’s Ueda Comments

Bank of Japan rate hike speculation fueled big moves in Japanese Government Bonds and the Japanese Yen this morning, the Nikkei Dow also fell 1.8% through the turmoil. Japan’s 10-year government bond yield surged above 0.75%, rebounding sharply from over three-month lows. The yen appreciated from about 147.3 to 144.7 USDJPY for a 1¾% gain. JGBs bear steepened with the 2s yield up about 4bps and 10s climbing 11bps. Bank of Japan Governor Kazuo Ueda before Parliament testified ambiguous guidance … Continue reading “Yen Rallies After Japan’s 10-year Government Bond Yield Surges on BOJ’s Ueda Comments”

Yen Falls After Bank of Japan Changes Language Around 1% 10yr JGB Cap BUT No 1.5% Extension

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. The BOJ did not extend the cap to 1.5% as speculated earlier but instead formalized the 1% cap. Previously the BoJ adjusted the settings by shifting the hard ceiling from 0.50% to 1.00% in the yield curve control band of +/- 0.50%. The yen weakened, move higher for yen crosses. The yen fell to fresh … Continue reading “Yen Falls After Bank of Japan Changes Language Around 1% 10yr JGB Cap BUT No 1.5% Extension”

Yen Falls Further After Bank of Japan No Change to Monetary Policy or Forward Guidance

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. Previously the BoJ adjusted the settings by shifting the hard ceiling from 0.50% to 1.00% in the yield curve control band of +/- 0.50%. The yen weakened, move higher for yen crosses. USD/JPY moved to fresh highs of 148.38 after Governor Ueda press conference where he said “I said that we need to patiently continue … Continue reading “Yen Falls Further After Bank of Japan No Change to Monetary Policy or Forward Guidance”

Bank of Japan No Change to Monetary Policy, JGB Yield Band Hard Celling to 1.00%

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. The BoJ adjusted the settings by shifting the hard ceiling from 0.50% to 1.00% in the yield curve control band of +/- 0.50%. There was much anticipation in the market prior as to Governor Ueda’s influence at the BoJ. BoJ inaction drives relief through global carry trades. The vote was 8-1 on YCC. Board member … Continue reading “Bank of Japan No Change to Monetary Policy, JGB Yield Band Hard Celling to 1.00%”

Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band as Expected

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. There was much anticipation being Governor Ueda’s second decision at the BoJ. BoJ inaction drives relief through global carry trades. The yen weakened, move higher for yen crosses, JGB yields rallied in bull flattener fashion and the Nikkei gained ground. Any doubt there about BOJ policy change has been removed until the next meeting, scheduled … Continue reading “Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band as Expected”

Deja Vu as Dollar Yen Soars After Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band

The Bank of Japan as widely expected kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield unanimously. There was much anticipation being Governor Ueda’s first decision at the BoJ. BoJ inaction drives relief through global carry trades. It was like Deja Vu, the yen weakened, JGB yields rallied in bull flattener fashion and the Nikkei gained ground. In his first press conference Ueda said “Risk from tightening too hastily is larger than … Continue reading “Deja Vu as Dollar Yen Soars After Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band”

Japan Inflation Hits 32 Year High in December

Japan’ s annual inflation rate rose to 4.0 % in December 2022 from 3.8% a month earlier, the highest reading since January 1991. The BOJ had been trying to get Japan on an inflationary bend for years, now it is clearly hear. The quickening pace of prices comes from high prices of imported raw commodities and yen weakness. Food prices are running up 7.0% vs 6.9% in November, water charges up 15.2% vs 14.1%, electricity (21.3% vs 20.1%) and gas … Continue reading “Japan Inflation Hits 32 Year High in December”