* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, July 5, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    MAY HER SOUL REST IN PEACE 🙏 Veteran entertainment columnist and talent manager Lolit Solis has passed away. She was 78 years old. https://tinyurl.com/6kumarkx | LatestChika.com – Facebook

    Beloved Entertainment Icon Lolit Solis Passes Away at 78 – A Life Remembered with Love and Respect 🙏

    Neil Young Plays Rare Full-Band ‘Ambulance Blues’ With The Chrome Hearts – Yahoo

    Neil Young Stuns Fans with Rare Full-Band Performance of ‘Ambulance Blues’ Alongside The Chrome Hearts

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    Nantucket Dance Festival opens July 8 – The Inquirer and Mirror

    Nantucket Dance Festival Launches with Thrilling Performances Beginning July 8

    A Secret Society, Ritualistic Killings, and a Century-Old Curse Netflix and YRF Entertainment’s ‘Mandala Murders’ Premieres July 25 – About Netflix

    A Secret Society, Ritualistic Killings, and a Century-Old Curse: Dive into the Chilling World of ‘Mandala Murders’ Premiering July 25

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

    Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

    Environmental cognitive distance, R&D capability distance, and supply chain green technology innovation – Nature

    Bridging Gaps: How Environmental and R&D Differences Drive Green Technology Innovation in Supply Chains

    LG Innotek CEO Moon Hyuksoo: “Our Next-gen Substrate Technology Will Change the Industry Paradigm” – TechPowerUp

    LG Innotek CEO Moon Hyuksoo: “Our Next-Gen Substrate Technology Will Revolutionize the Industry” Revolutionizing the Future: LG Innotek’s CEO Unveils Game-Changing Next-Gen Substrate Technology

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Meiwu Technology Company Limited and Shenzhen Zhinuo – GlobeNewswire

    Meiwu Technology Company Limited and Shenzhen Zhinuo – GlobeNewswire

    Owls inspire new revolutionary noise reduction technology – KTEN

    Owls inspire new revolutionary noise reduction technology – KTEN

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

    MAY HER SOUL REST IN PEACE 🙏 Veteran entertainment columnist and talent manager Lolit Solis has passed away. She was 78 years old. https://tinyurl.com/6kumarkx | LatestChika.com – Facebook

    Beloved Entertainment Icon Lolit Solis Passes Away at 78 – A Life Remembered with Love and Respect 🙏

    Neil Young Plays Rare Full-Band ‘Ambulance Blues’ With The Chrome Hearts – Yahoo

    Neil Young Stuns Fans with Rare Full-Band Performance of ‘Ambulance Blues’ Alongside The Chrome Hearts

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    BTS Announce Their Big Return and Yes, They Already Have Some Major Plans in the Works – Yahoo

    Nantucket Dance Festival opens July 8 – The Inquirer and Mirror

    Nantucket Dance Festival Launches with Thrilling Performances Beginning July 8

    A Secret Society, Ritualistic Killings, and a Century-Old Curse Netflix and YRF Entertainment’s ‘Mandala Murders’ Premieres July 25 – About Netflix

    A Secret Society, Ritualistic Killings, and a Century-Old Curse: Dive into the Chilling World of ‘Mandala Murders’ Premiering July 25

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

    Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

    Environmental cognitive distance, R&D capability distance, and supply chain green technology innovation – Nature

    Bridging Gaps: How Environmental and R&D Differences Drive Green Technology Innovation in Supply Chains

    LG Innotek CEO Moon Hyuksoo: “Our Next-gen Substrate Technology Will Change the Industry Paradigm” – TechPowerUp

    LG Innotek CEO Moon Hyuksoo: “Our Next-Gen Substrate Technology Will Revolutionize the Industry” Revolutionizing the Future: LG Innotek’s CEO Unveils Game-Changing Next-Gen Substrate Technology

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Inspira Technologies Secures Landmark $22.5M Deal: Major Revenue Breakthrough After FDA Clearance – Stock Titan

    Meiwu Technology Company Limited and Shenzhen Zhinuo – GlobeNewswire

    Meiwu Technology Company Limited and Shenzhen Zhinuo – GlobeNewswire

    Owls inspire new revolutionary noise reduction technology – KTEN

    Owls inspire new revolutionary noise reduction technology – KTEN

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Column-Japan calls time on G10 ‘central bank put’: McGeever

November 1, 2023
in Business
Column-Japan calls time on G10 ‘central bank put’: McGeever
Share on FacebookShare on Twitter

Column-Japan calls time on G10 'central bank put': McGeever
© Reuters. Bank of Japan Governor Kazuo Ueda attends a press conference after its policy meeting in Tokyo, Japan October 31, 2023, in this photo taken by Kyodo. Mandatory credit Kyodo via REUTERS

By Jamie McGeever

ORLANDO, Florida (Reuters) – In scrapping its hard yield ceiling of 1%, the Bank of Japan has taken a huge step towards dismantling a widespread assumption at the heart of G10 monetary policy for decades – the idea of a central bank ‘put’.

Justified or not, a perception had built up among investors since the days of former Fed Chair Alan Greenspan that the Federal Reserve – and later, other central banks – would always eventually ease credit to support wobbling asset markets when price falls threatened to snowball.

Perhaps that thinking was more myth, as former St. Louis Fed President William Poole outlined in 2007. The line between preserving financial stability and propping up asset markets blurred tremendously in the following years, understandably so since the Great Financial Crisis.

But for most of the time since the late 1980s, when Greenspan became Fed chair, central banks were tooled mostly to fighting against the risk of deflation rather than inflation – and the likes of the Bank of Japan and Swiss National Bank were in the thick of that battle.

With many economists arguing that world is now gone – as even Japan is now battling to rein in above-target inflation – the notion that central banks will automatically ease policy to backstop financial markets looks a bit fanciful.

“Markets didn’t realize that the ‘central bank put’ was a luxury good, which only really existed when inflation was under control, below target, and the risks were to the downside,” says Steven Englander, head of global G10 FX research at Standard Chartered (OTC:) in New York.

“It’s fair to say all of these policies that were aimed at generating asset market strength by pumping liquidity into the market have basically been withdrawn.”

The idea of central banks riding to investors’ rescue with lower interest rates in times of trouble took root early in Greenspan’s tenure as Fed chief. Policymakers began putting greater store on the wealth effects from stock prices on consumption, and therefore wider economic growth.

A National Bureau of Economic Research working paper in March 2020 noted: “The statistical fact is that, since the mid-1990s, the Fed has tended to lower rates by an average of about 1.2 percentage points in the year after a 10% stock market decline.”

In addition, interest rate changes were asymmetric — Fed rate hikes following stock market recoveries were usually muted compared with the initial cuts.

FINANCIAL STABILITY

As near-zero interest rate policies (ZIRP) emerged after 2008, transmission of easier money – and the notion of a central bank put – spread to government bond buying or exchange rates, as in the case of Switzerland.

The SNB for years fought against market pressure to drive up the Swiss franc, capping it at 1.20 per euro in September 2011 until January 2015 when it simply stepped back, unleashing intense volatility and a rapid 30% revaluation.

This was an explicit, open-ended policy to hold the currency at a set level and flood the Swiss economy and markets with oceans of liquidity, but essentially still a central bank put.

Since the post-COVID-19 surge in inflation to 40-year highs in many developed economies, policymakers have moved even further away from those extremes, tightening policy via unprecedented rate hikes, shrinking balances sheets, or both.

With its history of deflation, Japan was always going to be the last to move. Public debt is the highest in the world at more than 250% of GDP and the BOJ owns around half of the entire government bond market.

Although it kept the benchmark policy rate at -0.10% on Tuesday, the significance of downgrading the 1% yield on 10-year JGBs to a “reference” rate from a hard cap should not be underestimated.

The cap was set only three months ago, and the speed with which it was abandoned suggests the BOJ under Governor Kazuo Ueda means business. Given that the BOJ now sees inflation well above its 2% target next year, could the BOJ go up through the gears and perhaps even raise rates in the coming months?

That may be too much, too soon. And underscoring the BOJ’s difficulty in managing its bumpy rather than immediate exit, the BOJ was intervening in the bond market again on Wednesday.

Policymakers will be aware of the damage rapidly rising borrowing costs could do to countless Japanese banks, financial firms and companies which have gorged on free and easy money for decades – the so-called zombie firms.

As Marc Chandler at Bannockburn Global Forex points out, it is financial stability that is ultimately – and rightly – at the heart of the so-called central bank put.

“There is a perception or myth that has built up around the central bank put. It doesn’t really exist, not in relation to market prices or levels. It is misunderstood. It is about financial instability,” Chandler says.

(The opinions expressed here are those of the author, a columnist for Reuters)

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/columnjapan-calls-time-on-g10-central-bank-put-mcgeever-3217257

Tags: businesscallsColumn-Japan
Previous Post

Bank Of Japan Maintains Yield-Curve-Control Policy, Sets Reference Point at 1%

Next Post

Reserve Bank of Australia Faces Pressure to Raise Interest Rates

New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

July 4, 2025
California AG Rob Bonta says online fantasy sports platforms are illegal in the state – KCRA

California AG Rob Bonta Cracks Down, Declares Online Fantasy Sports Platforms Illegal

July 4, 2025
Bridge Point Tacoma permit and settlement – Washington State Department of Ecology (.gov)

Bridge Point Tacoma permit and settlement – Washington State Department of Ecology (.gov)

July 4, 2025
Accelerated data-driven materials science with the Materials Project – Nature

Accelerated data-driven materials science with the Materials Project – Nature

July 4, 2025
Downtown Louisville, Ky., gets new lifestyle hotel – hotelmanagement.net

Downtown Louisville Welcomes Exciting New Lifestyle Hotel

July 4, 2025
Romer: Finding common ground in a divided world – VailDaily.com

Romer: Building Bridges to Unite a Divided World

July 4, 2025
The Republican Budget Bill Is an Economy Killer – Bloomberg.com

The Republican Budget Bill Is an Economy Killer – Bloomberg.com

July 4, 2025
Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

Kennedy Publishing, MGA Entertainment Launch Yummiland Magazine – License Global

July 4, 2025
Trump says his 6th phone call with Putin this year ‘didn’t make any progress’ – PBS

Trump says his 6th phone call with Putin this year ‘didn’t make any progress’ – PBS

July 4, 2025
Environmental cognitive distance, R&D capability distance, and supply chain green technology innovation – Nature

Bridging Gaps: How Environmental and R&D Differences Drive Green Technology Innovation in Supply Chains

July 4, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (705)
  • Economy (731)
  • Entertainment (21,619)
  • General (15,711)
  • Health (9,768)
  • Lifestyle (735)
  • News (22,149)
  • People (731)
  • Politics (738)
  • Science (15,947)
  • Sports (21,229)
  • Technology (15,715)
  • World (711)

Recent News

New Technology for Water Efficiency and Working with Mexico on Screwworm – AG INFORMATION NETWORK OF THE WEST

Revolutionary Water Efficiency Technology and Cross-Border Collaboration to Defeat Screwworm

July 4, 2025
California AG Rob Bonta says online fantasy sports platforms are illegal in the state – KCRA

California AG Rob Bonta Cracks Down, Declares Online Fantasy Sports Platforms Illegal

July 4, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version