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”

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. There was much anticipation after last month the market was shocked with BOJ Gov. Haruhiko Kuroda adjusting the central bank’s yield curve control program. The BoJ announced no change to the Yield Band (YCC) and said the decision on the was YCC by a unanimous vote. The bank left forward guidance on th rate on hold. … Continue reading “Dollar Yen Soars After Bank of Japan Keeps Monetary Policy Steady, No Change to JGB Yield Band”

Yen Soars After Bank of Japan Mini Pivot Widens Yield Curve Control 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. However, the market was shocked with Bank of Japan Gov. Haruhiko Kuroda adjusting the central bank’s yield curve control program with saw yields rise sharply and a similar move in the yen. Dollar Yen went from 137.20 to 133.20 on the announcement. 10-year JGB yields surged to 0.455%, the highest since 2015 leading to a limit … Continue reading “Yen Soars After Bank of Japan Mini Pivot Widens Yield Curve Control Band”

Japan Spent ¥6.35 trillion in October on Intervention to Support the Yen

Japan’s ministry of finance stepped into the foreign exchange market in October for just the second time, officially for the first time since 1998 to support the yen. The MoF said the government spent ¥6.35 trillion in October on intervention, equivalent to around US$42.8 billion. This is on top of the ¥2.8 trillion it spent in September. The currency extended losses to a fresh 32-year intraday low of 151.93 yen to the dollar on Oct. 21, as the spread between … Continue reading “Japan Spent ¥6.35 trillion in October on Intervention to Support the Yen”

Japan Intervened to Support Yen for First Time Since 1998 After BOJ Decision

Japan’s ministry of finance stepped into the foreign exchange market Thursday, officially for the first time since 1998 to support the yen. The US Treasury acknowledges FX intervention by the BoJ. The currency extended losses to fresh 24-year lows to145.89, as the spread between monetary policy in Japan and the United States widened further. On Wednesday the Federal Reserve raised rates 75bp whilst The Bank of Japan maintained its key short-term interest rate at -0.1%. The result being that the … Continue reading “Japan Intervened to Support Yen for First Time Since 1998 After BOJ Decision”

Bank of Japan Monetary Policy Unchanged Sending Yen to a Fresh 24-Year Low

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. The move follows the Federal Reserve raised rates 75bps earlier in the day, increased the interest rate differential between the U.S, and Japan. The decision added downward pressure on the yen. The yen fell briefly to a fresh 24-year low of more than 145.40 against the dollar after the BOJ’s announcement. The bank will remain an … Continue reading “Bank of Japan Monetary Policy Unchanged Sending Yen to a Fresh 24-Year Low”

Bank of Japan Monetary Policy Unchanged as Expected, Raises Inflation Forecast

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 by a 8-1 vote. The BOJ raised its inflation forecast on Thursday but kept guidance on policy bias and says to take more easing steps without hesitation as needed with eye on pandemic’s impact on economy. The bank will remain an outlier among a global wave of central banks tightening monetary policy.  BoJ Chief Kuroda BOJ … Continue reading “Bank of Japan Monetary Policy Unchanged as Expected, Raises Inflation Forecast”

Japanese Consumers Spending at Steepest Pace Since May 2021

Japan’s retail sales rose for the third straight month in May 2022 and at the steepest pace since May 2021. The lift came from the strength in consumption as the government has lifted all COVID-19 restrictions. Japanese sales of general merchandise picked up sharply at 20.7% vs 8% in April with faster rises in sales of fabric apparel & accessories at 11.8% vs 9.7%. Meanwhile, sales of motor vehicles dropped for the ninth consecutive months -10.1% vs -7.5%.  Auto sales … Continue reading “Japanese Consumers Spending at Steepest Pace Since May 2021”

Kuroda at G7 Said Bank of Japan Will Continue with Powerful Easing with CPI Unsustainable

The Bank of Japan chief Kuroda speaking at the G7 said BOJ will patiently continue with powerful easing announcing no change to monetary policy. While the major central banks tighten other than the PBOC Japan has taken a different path. Earlier today Japanese CPI came in with 2.5% headline and 2.1% core prices.  BoJ Chief Kuroda Kuroda did acknowledge the latest CPI but also said that he’s forecast 2% inflation for a while and that it’s not sustainable in Japan … Continue reading “Kuroda at G7 Said Bank of Japan Will Continue with Powerful Easing with CPI Unsustainable”

Soft Consumer Spending Sees Japan’s Q3 GDP Downgraded Further

Japan’s economy shrank 0.9% in the third quarter from the previous quarter, at an annualized pace of 3.0%, the Cabinet Office announced on Monday. This was worse than the previous estimate as the Coronavirus and supply shortage had more of a dampening affect than first thought. Japan Q3 GDP (2nd reading) GDP -0.9% q/q vs -0.8% expected GDP y/y -3.6% vs -3.1% expected (first estimate -3.0%) Private consumption -1.3% vs -1.1% prelim External demand 0.0% vs +0.1% prelim Inflation deflator … Continue reading “Soft Consumer Spending Sees Japan’s Q3 GDP Downgraded Further”