Tag - interest-rates

 
 

INTEREST RATES

Bank of Japan Gov. Kazuo Ueda hinted at a chance of a rate hike in the second half of this year by highlighting the likelihood of improvement in the price trend.
BUSINESS / Economy
Apr 18, 2024
More economists see BOJ rate hike in October, flag July risk
All 54 economists except for one predict no policy change at the central bank’s two-day meeting ending on April 26.
Bank of Japan board member Asahi Noguchi says the pace of future rate hikes will likely be much slower that of the central bank's global peers.
BUSINESS / Economy
Apr 18, 2024
BOJ rate hikes likely to be slower than those of peers, says board member
Asahi Noguchi, known for his dovish policy views, said the impact of rising domestic wages had yet be fully passed on into prices.
Warren Buffett’s Berkshire Hathaway would be the first major non-financial overseas debt issuer to sell yen bonds after the Bank of Japan last month scrapped the world’s last negative interest rate.
BUSINESS / Markets
Apr 9, 2024
Berkshire plans to sell first yen bonds since BOJ move
The U.S. company last turned to the yen bond markets in November, with a ¥122 billion ($803 million) five-tranche deal.
Bank of Japan Gov. Kazuo Ueda listens to a question during a news conference after a two-day monetary policy meeting at the central bank's headquarters in Tokyo on March 19.
BUSINESS / Economy / FOCUS
Apr 8, 2024
Ueda's first year as BOJ chief marked by smooth handling of policy shift
But the central bank governor now has to balance various factors, including how further rate hikes might affect not just the yen but also households.
Citigroup is betting that Japan’s bond market revival will gather steam after the Bank of Japan's rate hike.
BUSINESS / Markets
Apr 4, 2024
Citigroup sees ‘exciting market’ for Japan bonds after BOJ move
"Normalization has started, so we foresee a lot of activity going forward”
The yen remains around the three-decade low in the ¥151 range against the dollar even after the Bank of Japan's interest rate hike.
BUSINESS / Markets
Apr 4, 2024
Why even the BOJ's historic rate hike has failed to revive the yen
Japan’s first interest rate hike in 17 years has failed to deliver the boost to the yen that policymakers had hoped for.
The Bank of Japan headquarters in Tokyo
BUSINESS / Economy
Mar 28, 2024
BOJ summary hints at cautious approach to further rate increases
The summary indicates Gov. Kazuo Ueda and his fellow board members are in favor of taking a slow approach to rate hikes.
Signs of a decline in hedging demand suggest that local investors are less concerned the yen will rebound sharply.
BUSINESS / Economy
Mar 26, 2024
Lower hedging costs reveal Japan investors' confidence in weak yen bets
Three-month yen basis swaps, which indicate decreasing demand for hedging the more they rise, closed last week at their highest level since January 2022.
BOJ Gov. Kazuo Ueda takes questions during a news conference. The bank's monetary policy overhaul announced last week was known by some Japanese media before it was made public.
COMMENTARY / Japan
Mar 25, 2024
The BOJ has sprung a leak. Japan must investigate.
The bank's policy of disclosing information selectively to certain media is harmful and needs to be looked into, as slip-ups in other countries show.
Hedge funds have been consistently short the yen since 2021, according to CFTC, with the trade remaining popular in recent months on expectations that the BOJ’s pursuit of policy normalization will nonetheless remain accommodative.
BUSINESS / Markets
Mar 23, 2024
Hedge funds boost bearish yen bets after BOJ’s dovish hike
The yen fell more than 1% against the dollar following the conclusion of the central bank’s meeting Tuesday, and is now set for a second weekly drop.
Shoppers in Tokyo on Tuesday
BUSINESS
Mar 22, 2024
Historic day for BOJ will take some time to be felt by people in Japan
With future rate hikes likely, the yen and mortgages could still see a more substantial impact.
Bank of Japan Gov. Kazuo Ueda speaks during a news conference on Tuesday after the central bank ended its ultra-aggressive monetary stimulus program and scrapped the world's last negative interest rate.
EDITORIALS
Mar 22, 2024
The BOJ's rate hike is both more and less than it seems
There are some fears that the BOJ's return to a positive interest rate environment threatens weak companies.
The Bank of Japan's recent decision to abandon negative interest rates is seen more as a symbolic shift.
COMMENTARY
Mar 21, 2024
BOJ finally ditches negative rates, but this is no liftoff
It's the end of an era for the Bank of Japan as negative interest rates are phased out.
Bank of Japan Gov. Kazuo Ueda speaks to reporters after meeting with Prime Minister Fumio Kishida on Tuesday in Tokyo.
JAPAN / Politics
Mar 21, 2024
BOJ turns page on Abenomics, giving reeling Kishida election hope
The bank's aggressive monetary easing was one of the three pillars of the deflation-fighting program.
Analysts say further rate hikes by the Bank of Japan could prompt the downfall of "zombie" firms in the face of higher borrowing costs, but that the current labor shortage could help offset some of the adverse impacts of possible insolvencies.
BUSINESS / Companies
Mar 20, 2024
BOJ rate hike may spell end for Japan's unprofitable 'zombie' firms
The COVID-19 pandemic, in particular, pushed up the number of such firms that are barely surviving while struggling to cover debt-serving costs.
The Bank of Japan headquarters in Tokyo. A survey by Bloomberg indicates a majority of analysts surveyed doesn’t expect another rate hike as a base case, but plenty of others are warning that the BOJ may not be finished.
BUSINESS / Economy
Mar 20, 2024
Investors and economists split on whether BOJ will raise rates again
By moving in March instead of the consensus view of April, Gov. Kazuo Ueda secured space to raise borrowing costs again if data supports the case.
Bank of Japan Gov. Kazuo Ueda (center) and Deputy Govs. Ryozo Himino (left) and Shinichi Uchida (right) attend a news conference at the bank headquarters in Tokyo in April 2023
BUSINESS / Economy / FOCUS
Mar 20, 2024
How the Bank of Japan's plan for a smooth stimulus exit unfolded
The decision was complicated by differences between BOJ Gov. Kazuo Ueda's two deputies, as well as the governor's wavering on the exit timing.
The Bank of Japan headquarters in Tokyo
BUSINESS / Companies
Mar 19, 2024
Japanese business groups welcome BOJ's first rate hike in 17 years
"I think the BOJ has caught the indications that a virtuous cycle between wages and prices has started," Keidanren Chairman Masakazu Tokura said.
Bank of Japan Gov. Kazuo Ueda attends a news conference after a policy meeting at the bank's headquarters in Tokyo on Tuesday.
BUSINESS
Mar 19, 2024
BOJ introduces first rate hike in 17 years following pay gains
The negative rates policy, the last one in the world, had been a symbol of the Bank of Japan's ultraloose monetary stimulus lasting over a decade.
The Bank of Japan will decide whether to end its negative interest rate policy at its policy board meeting, which ends on Tuesday.
BUSINESS / Economy
Mar 18, 2024
BOJ’s Ueda faces decision time on rate hike
With the end of Japan's negative rate being a near certainty, the only question that remains is whether it comes on Tuesday or at the end of April.

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