Central Banks

  • 2019-09-17 03:21

    TOKYO (MNI) - There is no immediate need for the Bank of Japan to conduct further easing, but the BOJ will likely deepen its short-term policy interest rate further into negative territory as a precautionary move against the accumulating risks facing Japan's economy, former Deputy Governor Hirohide Yamaguchi said Tuesday

    "The already-implemented easing by the BOJ has produced side-effects and I think it doesn't need to conduct further easing, which in turn will further increase side-effects," Yamaguchi, now chairman of the Advisory Board at Nikko Research Center told reporters.

    Although emphasizing the positive benefits to both the economy and financial markets if the BOJ don't conduct further easing, Yamaguchi said that there is the possibility that the central bank cut

  • 2019-09-16 11:53

    By Luke Heighton

    FRANKFURT (MNI) - Key interest rates could be cut further, the European Central Bank's chief economist said Monday, as he outlined the reasoning behind last week's package of monetary policy measures aimed at boosting growth and inflation.

    However, "the more fiscal policy contributes to boosting long-term growth potential and providing cyclical stabilisation," Philip Lane warned, "the quicker will be the effects of monetary policy interventions on inflation and the economy."

    Here are key points from the speech in Frankfurt:

    -- "If needed," Lane said, "we can further lower the deposit facility rate and, with it, the overnight money market rate.

  • 2019-09-06 15:00

    Powell sees no recession, says politics play no role in Fed decisions

    WASHINGTON (MNI) - Federal Reserve Chair Jay Powell said he will "act as appropriate" to sustain a U.S. economic expansion facing "significant risks" like a global slowdown, trade policy uncertainty and weak inflation.

    Although the robust labor market and consumer sector have showed staying power, inflation has been muted and near-term risks are to the downside, he said Friday.

  • 2019-09-06 02:41

    TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda said that cutting interest rates "further into the negative zone is always an option" for the BOJ, according Japan's Nikkei.

    He also said that the central bank is growing increasingly concerned about mounting downside risks to the global economy from the U.S.-China trade war.

    He again noted that rate cuts are one of the four policy options the BOJ has presented before.

    In its statement after July's policy board meeting, the BOJ had signalled a willingness to consider preemptive easing if necessary.

  • 2019-09-04 09:26

    By Luke Heighton

    FRANKFURT (MNI) - The European Central Bank's purchase of corporate bonds helped ease financing conditions for euro area firms without access to bond-based financing, a paper published on Wednesday has concluded.

    The ECB began buying investment-grade euro-denominated bonds issued by non-financial corporations in March 2016, under the Corporate Sector Purchase programme (CSPP), in conjunction with a cut in key interest rates, the announcement of a new series of targeted longer-term refinancing operations (TLTROs), and an increase in monthly asset purchases.

    "CSPP creates spare capacity in banks' balance sheets that they can use to lend to bank-dependent firms, mainly small and medium-sized enterprises (SMEs)," the paper said.

    By increasing the net i

  • 2019-09-03 22:26

    TOKYO (MNI) - Bank of Japan board member Goushi Kataoka said Wednesday that it is vital for the BOJ to take pre-emptive policy action if needed as it will be too late to act after confirming a worsening of the underlying trend of prices through economic data.

    However, Kataoka didn't elaborate on how and when the BOJ would consider further easing.

  • 2019-09-01 21:23

    TOKYO (MNI) - The Bank of Japan Monday lowered the scale of its purchases of Japanese government bonds with a remaining life of 10 to 25 years to Y140 billion from Y160 billion at the previous similar operation held Aug. 26.

    The reduction was expected by many market players and is designed to curb the recent drop in longer-end bond yields, although the drop is consistent with the decline in overseas yields.

    The cut is the first time since Aug. 9 when the bank lowered the scale to Y160 billion from Y180 billion.

    The 10-year bond yield traded at -0.270% vs.

  • 2019-08-30 05:07

    --BOJ Keeps Frequency of All JGB Buying in September

    TOKYO (MNI) - The Bank of Japan said Friday it has lowered the range of its purchases of long-term Japanese government bonds following the recent drop in bond yields.

    The range of long-term bond buying operation per operation was reduced to a range of Y250 billion to Y550 billion from the previous range of Y300 billion to Y650 billion.

    The BOJ left the frequency of its JGB purchases unchanged in September from August. But the bank said that it may increase the frequency as needed.

  • 2019-08-29 21:35

    TOKYO (MNI) - The Bank of Japan Friday lowered the size of its purchases of Japanese government bonds with a remaining life of 5 to 10 years to Y400 billion from Y450 billion at the previous similar operation on Aug. 23.

    The reduction was expected by some bond players, as JGB yields have fallen recently on the back of tight supply/demand and the hope for a rate cut by the U.S. Federal Reserve.

    The BOJ lowered the scale of its purchases of long-term bonds on Aug. 16 to Y450 billion from Y480 billion.

    The 10-year bond yield rose to -0.275% after the operation from -0.285% traded in the early morning but the impact on JGB prices was limited.

  • 2019-08-28 22:07

    TOKYO (MNI) - The Bank of Japan must manage monetary policy more carefully than before as further easing could increase side-effects, board member Hitoshi Suzuki said Thursday.

    "We have to pay attention to the heightened downside risks to the global economy," Suzuki said, adding that if volatility in global financial markets increased amid the downside risk to the global economy, it would increase downward pressure on the global economy.

    Speaking to business leaders in Kumamoto City, Suzuki said the BOJ must keep a careful watch on how downside global economic risks affects firms' and households' sentiment.

    However, Suzuki, a former commercial banker who joined the nine-member policy board in July 2017, didn't elaborate on how and when the BOJ would consider taking