Tag - negative-interest-rates



Ever since the Bank of Japan ended its negative rate policy, calls for the government to strengthen its fiscal discipline have been growing, with the country being haunted by public debt that is about twice the size of its gross domestic product.
May 30, 2024
Two cheers for the end of free money in Japan
Corporations are better prepared for more expensive money than they were in the past, with strong balance sheets and a better understanding of risk.
An LDP panel's proposal on fiscal policy underscores how a weak yen and an exit from ultra-low interest rates are piling pressure on Japan to rein in its huge public debt.
May 30, 2024
Japan must restore fiscal discipline to protect yen's value, LDP panel says
The views of the panel of Liberal Democratic Party lawmakers are shared by the powerful Finance Ministry, who oversees the state budget.
Japan's banks are benefiting from the Bank of Japan's policy shift and strong loan demand among their corporate clients.
BUSINESS / Companies
May 15, 2024
Japan’s biggest banks forecast record profits as rates rise
The banks are benefiting from an earnings boost following the Bank of Japan’s policy shift in March.
Katsunobu Kato, former chief Cabinet secretary and a ruling party veteran, says the Bank of Japan must keep a close eye on economic conditions and coordinate carefully with the government in working out when to raise rates.
May 13, 2024
Japan on track to normalize monetary policy, says ruling party heavyweight
The weak yen has inflated import costs, hurting consumption and creating headaches for policymakers looking to shore up a fragile economic recovery.
Bank of Japan Gov. Kazuo Ueda speaks during a news conference after a two-day monetary policy meeting at the BOJ headquarters in Tokyo on April 26.
May 9, 2024
Many BOJ board members saw need for steady rate hikes in April, records show
Some saw the chance of a faster-than-expected pace of interest rate hikes on prospects of inflation durably staying or exceeding the bank's 2% target.
Major banks as well as regional banks have raised their ordinary deposit rates to 0.02% per annum from 0.001%.
BUSINESS / Markets
May 6, 2024
Many banks in Japan raise deposit rates after BOJ action
Banks have also refrained from raising their lending rates, which would affect households and other corporate activities.
Bank of Japan Gov. Kazuo Ueda holds a news conference after a policy meeting at the BOJ's headquarters in Tokyo on March 19.
BUSINESS / Economy
May 2, 2024
BOJ saw need to let markets drive yields upon March exit: minutes
The bank ended eight years of negative interest rates and its bond yield control at its March policy meeting.
Bank of Japan Gov. Kazuo Ueda hasn’t ruled out responding to exchange rates with a policy move if the impact on prices is seen to be "non-negligible.”
BUSINESS / Economy
Apr 23, 2024
BOJ to hold rates with focus on hawkish signals to buoy yen
Gov. Kazuo Ueda and his fellow board members are set to keep the short-term rate around 0% to 0.1% at the end of their two-day policy meeting.
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.
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.
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
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.
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.


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