Central Banks

  • 2019-03-21 20:15


    --Japan Core CPI Up 0.7% y/y In February Vs. +0.8% in January

    TOKYO (MNI) - The Bank of Japan's outlook on prices remains cautious as the latest data confirmed the country remains locked in a low inflation environment.

    Japan's nationwide core consumer price index rose 0.7% on year in February, decelerating from 0.8% in January. Core CPI rise was expected to come in at +0.8% on year (vs.

  • 2019-03-20 15:20


    WASHINGTON (MNI) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.

    Question: The Fed has been allowing the average maturity of securities in its bond portfolio to lengthen. Is this aimed at consciously, aimed at flattening the yield curve? And is that going to be part of the Fed's longer run balance sheet strategy? And if flattening the yield curve is a conscious long-term strategy, are you concerned about the side effect of the heightening concerns about a flatter or inverted yield curve being a harbinger of recession.

    Powell: The basic answer to the question is no.

  • 2019-03-20 15:20


    WASHINGTON (MNI) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.

    Question: Hi, Jean Yung from Market News. I wanted to ask, at what point do you expect to begin to allow the balance sheet to grow slowly again? How will you make that decision?

    Powell: As I mentioned, the balance sheet runoff will stop at September 30.

  • 2019-03-20 15:10


    WASHINGTON (MN) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.

    Question: I counted five downgrades in the first paragraph of the FOMC statement. What conditions do you need to see in order for a rate cut or rate hike on the other side of that then?

    Powell: I think we wanted to be careful to go ahead and acknowledge the things, it's relatively little hard data so far this year but we were careful to point out lower retail sales, the weak November meeting, BFI, all those things, and that was the right thing to do.

  • 2019-03-20 15:07


    WASHINGTON (MN) - The following is a response of Federal Reserve Chairman Jerome Powell to a question from a reporter at his press conference following Wednesday's Federal Open Market Committee meeting.

    Question: On the size of the balance sheet, do you have a numerical estimate for where it will be at the end of September once the runoff is complete?

    Powell: In terms of the size of the balance sheet, the balance sheet will be of a size of approximately 17 percent of GDP, around the end of this year, down from 25 percent of GDP at the end of 2014. So significantly smaller relative to GDP than it was.

  • 2019-03-19 20:43


    TOKYO (MNI) - Policy coordination with the government will be more important if downside risks to economic activity and prices materialized, argued a few Bank of Japan board members argued, the minutes of the January 22-23 policy meeting released Wednesday showed.

    However, the board largely saw no imminent need to consider taking additional easy policy, as Japan's economy is expanding moderately underpinned by the virtuous cycle from profits to spending.

    However, one member "expressed the recognition that hastily changing policy amid a situation of high uncertainties would instead entail risks including accumulation of financial imbalances and increasing swings in economic activity, and therefore, it was important for the BOJ to take appropriate action in light of the pre

  • 2019-03-17 20:34


    --Japan February Exports Fall 1.2% Y/Y After -8.4% In January

    TOKYO (MNI) - Japan's exports fell again in February, posting a year-on-year drop for a third-straight month, indicating that exports continue to be hit by slowing global demand, with Bank of Japan officials increasingly watchful over the outlook for exports.

    BOJ officials expect Japan's exports to remain weak for the time on the back of China's slowing economy and sluggish capital investment overseas, at least until the impact of the Beijing's economic stimulus measures kick in.

    Exports, a main driver for Japan's economy, fell 1.2% on year in February following -8.4% in January and weaker than the MNI median forecast of +0.7%, led by lower exports of motor vehicles, iron/steel products and chip-making equipmen

  • 2019-03-15 03:33


    BEIJING (MNI) - The People's Bank of China should consider raising the deposit reserve rate to help banks lower lending costs to companies, Dai Xianglong, the former central bank governor said.

    "The interest rate the PBOC pays for the deposit reserves that banks are required to set aside has been set at 1.62% for a long term, and the authorities should raise it to a level not lower than the average deposit rate," Dai told in a forum held by China Finance 40 Forum, a prominent Chinese think tank.

    Dai, also warned China must be alert to systemic risk as the financial markets open up, including a plunge in the stock market, increases in defaults and a sharp yuan depreciation, adding that the authorities must do their best to avoid them.

    Dai noted China has made efforts

  • 2019-03-14 23:10


    TOKYO (MNI) - The Bank of Japan left monetary policy unchanged Friday, voting 7-2 vote to continue with yield curve control and the asset purchases, as Japan's economy is expanding moderately, despite heightened downside risks.

    The BOJ board maintained the overall economic assessment, saying "Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating," adding that the economy "is likely to continue its moderate expansion."

    However, in the wake of weaker data, the BOJ lowered its assessment of exports and overseas economies, reflecting slowing in China and Europe.

    "Exports have shown some weakness recently," the BOJ said.

  • 2019-03-14 16:23


    --Repeating File Initially Sent at 10:55 ET/14:55 GMT Thursday

    WASHINGTON (MNI) - The slowdown in the U.S.