Jun 12, 2014

Big BOJ balance sheet may be inflation target's legacy

Bank of Japan officials are considering maintaining a large balance sheet for the central bank even after it achieves its inflation target, reducing the risk of a surge in long-term bond yields, sources said. Under the potential strategy, the BOJ would use cash from ...

May 1, 2014

Assured BOJ foils analysts' predictions

The confidence that Bank of Japan officials are demonstrating in achieving their inflation target is lowering the chances of additional monetary easing this year even as the economy weakens. Consumer prices excluding fresh food but not energy will increase 1.9 percent in the fiscal ...

BOJ said worried by bond traders' ignoring of inflation

Apr 25, 2014

BOJ said worried by bond traders' ignoring of inflation

Bank of Japan officials are increasingly concerned the nation’s bond market is failing to reflect emerging inflation, raising the risk of a sudden surge in yields, sources said. Japan’s benchmark 10-year government bonds yield 0.615 percent, little changed from March 2013, even after a ...

Apr 23, 2014

BOJ will not buy bonds indefinitely

Bank of Japan Gov. Haruhiko Kuroda has said the BOJ will not buy bonds just to keep down the government’s debt-servicing costs after it achieves its goal of stable 2 percent inflation. “If we reach our target and prices are stable, we have no ...

Higher prices risk 'Abenomics' backlash

| Apr 14, 2014

Higher prices risk 'Abenomics' backlash

Prime Minister Shinzo Abe’s bid to vault Japan out of 15 years of deflation risks losing public support by spurring too much inflation too quickly as companies add extra price increases to this month’s sales tax bump. Businesses from Suntory Beverage and Food Ltd. ...

Japan Inc. builds mountain of cash

Dec 20, 2013

Japan Inc. builds mountain of cash

Japanese companies’ cash holdings rose to a record last quarter, highlighting Prime Minister Shinzo Abe’s struggle to spur the investment and wage increases needed to end a 15-year deflationary malaise. Corporate holdings of cash and deposits rose to ¥224 trillion, up 5.9 percent from ...

Abe betting this tax hike will be different

Sep 30, 2013

Abe betting this tax hike will be different

It’s different this time. The four most dangerous words in markets, according to former U.S. Treasury Secretary Larry Summers. With the consumption tax set to be raised for the first time since 1997, Prime Minister Shinzo Abe’s political future rides on a different outcome ...

Abe's return could ease yen, aid exporters

Dec 22, 2012

Abe's return could ease yen, aid exporters

The economy has shrunk almost 10 percent in the half decade since Shinzo Abe was last prime minister, as a soaring yen hollows out manufacturing. Abe’s return may be exporters’ best chance yet to halt the damage. Abe’s calls for unlimited central bank liquidity ...

Jun 13, 2012

Stimulus advocates tapped for BOJ slots

The government has nominated two economists to the Bank of Japan’s Policy Board who have previously signaled support for stimulus, underscoring forecasts for policy makers to expand asset purchases in coming months. Prime Minister Yoshihiko Noda’s administration on Monday tapped Takahide Kiuchi of Nomura ...