Front Page

  • 2019-05-31 04:54


    --BOJ Ups Upper End of Longer-Term JGB Buying
    --BOJ Makes Gap Between 10-Yr Auction and Long-Term JGB Buys
    --BOJ To Conduct Long-Term JGB Buys 3 Business Days After Auction

    TOKYO (MNI) - The Bank of Japan said Friday it will reduce the frequency of its longer-term Japanese government bond purchases to three times in June from the current four times in May.

    But the BOJ increased the upper end of those bond buying operation to Y300 billion from Y250 billion.

    The bank also extended the time gap between its policy enforcing 5-to-10-year JGB purchases and the regular Ministry of Finance auctions of the benchmark 10-year bonds to boost market pricing and functioning.

  • 2019-05-31 01:28


    --Japan May Consumer Confidence Index 39.4 Vs Apr 40.4
    --Japan Govt Keeps View: Consumer Confidence Weakening

    TOKYO (MNI) - Japan's consumer confidence index fell 1.0 to a seasonally adjusted 39.4 in May, the eighth straight monthly drop, the latest Consumer Confidence Survey released by the Cabinet Office showed Friday.

    The dip, which came after a 0.1 point fall to 40.4 in April, was due mainly to weaker earnings prospects and for purchases of durable goods.

    --The Cabinet Office left its assessment unchanged, saying consumer confidence was "weakening." The government in February lowered the assessment from January when it said that consumer confidence "showed weak moves."

    --Consumers were more pessimistic on all four key sentiment indicators; income conditions, t

  • 2019-05-30 17:19


    By Greg Quinn

    OTTAWA (MNI) - Bank of Canada Senior Deputy Governor Carolyn Wilkins said the economy is receiving stimulus from a policy interest rate that is less than both inflation and estimates of a neutral borrowing cost.

    The BOC left its key rate at 1.75% Wednesday, less than the current 2% pace of consumer price gains.

  • 2019-05-30 14:15


    By Greg Quinn

    OTTAWA (MNI) - Bank of Canada Senior Deputy Governor Carolyn Wilkins said the threat of a prolonged global trade war is the ``wild card'' to an economic recovery that still requires stimulative interest rates. Wilkins said future decisions on a policy rate, held at 1.75% on Wednesday, will focus on trade disputes, oil markets and domestic household spending. Canadian business activity is being held back by global trade fights and her own country's bilateral disputes with the U.S. and China.

  • 2019-05-30 13:01


    By Jean Yung

    WASHINGTON (MNI) - Financial stability risks are not currently elevated despite high corporate borrowing, Federal Reserve Vice Chair Randal Quarles said Thursday, adding that such risks should not be a top consideration in the setting of monetary policy.

    "My own assessment is that even though business debt is elevated, at least by some measures, overall financial stability risks are not, as the financial sector has substantial loss absorbing capacity and is not overly reliant on unstable short-term funding," he said in remarks prepared for a Fed conference in Washington.

  • 2019-05-30 01:50


    --Adds Comments From Briefing in Paragraphs 5-11

    SHIZUOKA, Japan (MNI) - Bank of Japan board member Makoto Sakurai said Thursday that the side-effects of a prolonged easy policy will be an extremely important issue regarding monetary policy.

    "It is vital for the BOJ to manage its monetary policy appropriately, while examining both favorable effects and side-effects, including the accumulated financial imbalances," Sakurai told business leaders in Shizuoka City.

    However, Sakurai sees no imminent need to mitigate the side-effects and to unwind the easy policy and said the BOJ needs to patiently maintain the current easy policy to keep the positive output gap and to support the economy.

    "It isn't desirable for the BOJ to conduct additional easy policy for the reason of

  • 2019-05-29 22:50


    SHIZUOKA, Japan (MNI) - Bank of Japan board member Makoto Sakurai said Thursday that the side-effects of a prolonged easy policy will be an extremely important issue regarding monetary policy.

    "It is vital for the BOJ to manage its monetary policy appropriately, while examining both favorable effects and side-effects, including the accumulated financial imbalances," Sakurai told business leaders in Shizuoka City.

    However, Sakurai sees no imminent need to mitigate the side-effects and to unwind the easy policy and said the BOJ needs to patiently maintain the current easy policy to keep the positive output gap and to support the economy.

    The BOJ board at the April 24-25 policy meeting decided to clarify its stance of maintaining the current power easy policy, saying t

  • 2019-05-29 10:00


    By Greg Quinn

    OTTAWA (MNI) - The Bank of Canada left its key interest rate at 1.75% and said this degree of accommodative policy remains appropriate. There was no new clear signal about a potential change in rates in the statement Wednesday, and the decision to hold was expected by investors and economists surveyed by MNI. The BOC said there is increasing evidence the economy shifted into a pickup starting in the second quarter including consumer spending, exports and signs of firming business investment. Trade tensions have risen globally and Canadian companies are seeing increased restrictions on trade with China. Exporters should benefit from the end of metals tariffs with the U.S. and from signs that a replacement for the Nafta trade pact will be ratified.

  • 2019-05-29 07:00


    WASHINGTON (MNI) - The Mortgage Bankers Association Wednesday reported a pull-back in mortgage activity in the May 24 week, with activity down 3.3% despite mortgage rates holding steady.

    Here are some of the key features of the report:

    - The Refinance Index fell by 6%, while the Purchase Index fell by 1% in the current week.

    - The 30-year average rate for a 30-year fixed mortgage held-steady at 4.33% in the current week, remaining at its lowest point since January 2018.

    - The unadjusted purchasing index was up 7% from a year earlier.

    --MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

    [TOPICS: MAUDS$,M$U$$$,MK$$$$,M$$MO$]

  • 2019-05-29 04:54


    By Luke Heighton

    FRANKFURT (MNI) - Uncertainty surrounding global economic growth prospects has contributed to bouts of high volatility in financial markets, according to a European Central Bank report, while "weaker than expected growth and a possible escalation of trade tensions could trigger further falls in asset prices."

    May's Financial Stability Review (FSR) identified three areas of core concern for the eurozone:

    -- The materialisation of downside risks to economic growth could spark greater financial market volatility.

    -- Persistent downside risks to growth emphasising the need to strengthen the balance sheets of highly indebted firms and governments

    -- Subdued bank profitability prospects related to slow progress in addressing structural issues.