* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Thursday, May 8, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Blackstone River Theatre presents music from Scotland with Cantrip – The Valley Breeze

    Experience the Enchanting Sounds of Scotland: Cantrip Takes the Stage at Blackstone River Theatre!

    The viral wireless audio dongle for in-flight entertainment just got a big upgrade – and I love it – ZDNET

    Game-Changer for In-Flight Entertainment: The Upgraded Wireless Audio Dongle You’ll Love!

    Tahoe City Downtown Association opens 4th of July Entertainment Grant Program – Sierra Sun

    Celebrate Independence Day: Tahoe City Launches Exciting 4th of July Entertainment Grant Program!

    WEBTOON Entertainment Revolutionizes Webcomic Discovery with Innovative New Personalization Features and Product Updates – Business Wire

    Unlocking a New Era of Webcomic Discovery: WEBTOON’s Exciting Personalization Features and Updates!

    What does Gen Z consider entertainment? – The Drum

    Unlocking Gen Z’s Entertainment Preferences: What Captivates the Next Generation

    MSQ Sport + Entertainment appoints Steph Lund as North America CEO – Campaign US

    Steph Lund Takes the Helm as CEO of MSQ Sport + Entertainment in North America!

  • 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
    Trump administration set to overhaul Biden’s AI chip export regulations – TechHQ

    Trump administration set to overhaul Biden’s AI chip export regulations – TechHQ

    Technology is the key to empathy in insurance – InsuranceNewsNet

    Unlocking Empathy: How Technology is Transforming the Insurance Experience

    Technology – Inflexion

    Revolutionizing the Future: The Impact of Cutting-Edge Technology

    Outdated technology and stress-related absences contribute to Newark Airport chaos – Travel Weekly

    How Outdated Technology and Stress Are Fueling Chaos at Newark Airport

    Tech & AI LIVE London: Q&A with IBM’s Nabeel Nawaz – Technology Magazine

    Tech & AI LIVE London: Q&A with IBM’s Nabeel Nawaz – Technology Magazine

    Radar Technology Offers Contactless Vital Sign Monitoring for Rural Healthcare – AZoSensors

    Revolutionizing Rural Healthcare: How Radar Technology Enables Contactless Vital Sign Monitoring

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Blackstone River Theatre presents music from Scotland with Cantrip – The Valley Breeze

    Experience the Enchanting Sounds of Scotland: Cantrip Takes the Stage at Blackstone River Theatre!

    The viral wireless audio dongle for in-flight entertainment just got a big upgrade – and I love it – ZDNET

    Game-Changer for In-Flight Entertainment: The Upgraded Wireless Audio Dongle You’ll Love!

    Tahoe City Downtown Association opens 4th of July Entertainment Grant Program – Sierra Sun

    Celebrate Independence Day: Tahoe City Launches Exciting 4th of July Entertainment Grant Program!

    WEBTOON Entertainment Revolutionizes Webcomic Discovery with Innovative New Personalization Features and Product Updates – Business Wire

    Unlocking a New Era of Webcomic Discovery: WEBTOON’s Exciting Personalization Features and Updates!

    What does Gen Z consider entertainment? – The Drum

    Unlocking Gen Z’s Entertainment Preferences: What Captivates the Next Generation

    MSQ Sport + Entertainment appoints Steph Lund as North America CEO – Campaign US

    Steph Lund Takes the Helm as CEO of MSQ Sport + Entertainment in North America!

  • 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
    Trump administration set to overhaul Biden’s AI chip export regulations – TechHQ

    Trump administration set to overhaul Biden’s AI chip export regulations – TechHQ

    Technology is the key to empathy in insurance – InsuranceNewsNet

    Unlocking Empathy: How Technology is Transforming the Insurance Experience

    Technology – Inflexion

    Revolutionizing the Future: The Impact of Cutting-Edge Technology

    Outdated technology and stress-related absences contribute to Newark Airport chaos – Travel Weekly

    How Outdated Technology and Stress Are Fueling Chaos at Newark Airport

    Tech & AI LIVE London: Q&A with IBM’s Nabeel Nawaz – Technology Magazine

    Tech & AI LIVE London: Q&A with IBM’s Nabeel Nawaz – Technology Magazine

    Radar Technology Offers Contactless Vital Sign Monitoring for Rural Healthcare – AZoSensors

    Revolutionizing Rural Healthcare: How Radar Technology Enables Contactless Vital Sign Monitoring

    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

Explainer-When and how would BOJ exit ultra-loose monetary policy?

January 24, 2024
in Business
Explainer-When and how would BOJ exit ultra-loose monetary policy?
Share on FacebookShare on Twitter

Explainer-When and how would BOJ exit ultra-loose monetary policy?
© Reuters. FILE PHOTO: People walk in front of the Bank of Japan building in Tokyo, Japan January 23, 2024. REUTERS/Kim Kyung-Hoon/File Photo

By Leika Kihara

TOKYO (Reuters) – The Bank of Japan, kicking off its first meeting for 2024 this week, gave the clearest signal yet that an end to its years-long negative interest rate policy was approaching.

In a briefing after keeping ultra-loose policy on Tuesday, governor Kazuo Ueda said the chance of sustainably hitting the central bank’s 2% inflation target was increasing.

Ueda pointed to encouraging signs in service-sector prices and wages that heightened the BOJ’s conviction that conditions for phasing out ultra-loose policy settings are falling into place.

Many market players expect negative rates, in place since 2016, to end this year with the most likely timing seen as either at the meeting on March 18-19 or at the next one on April 25-26.

Below are key factors that could affect the timing of an end to negative rates and possible scenarios of an exit:

WHAT ARE THE KEY SIGNALS?

The BOJ added a new phrase in its quarterly outlook report that the likelihood of hitting 2% inflation “continued to rise gradually.” While Ueda had made similar comments recently, putting it in the report was a big leap for the usually cautious BOJ as it shows the board is now unanimous in their view that conditions for winding down stimulus were falling into place.

The BOJ already projects trend inflation to stay near 2% in 2024 and 2025. But it wants to hold fire until it is convinced that wages and services inflation would rise enough to achieve the forecast.

That means any hints on the exit timing would come through subtle changes in the nuance or tone of BOJ policymakers’ public comments on the prospects for durably achieving 2% inflation.

The BOJ tends to use pre-set seminars and speeches, rather than Ueda’s parliament appearances, in delivering key signals on monetary policy.

WHEN COULD THE BOJ ACT?

Big firms’ annual wage negotiations with unions conclude in mid-March, which set the course for smaller firms’ talks and determine whether wage hikes become broad-based. Using its branch offices across the nation, the BOJ is also conducting hearings on regional firms to gauge the wage outlook.

That would give the BOJ enough evidence to justify ending negative rates in March. The BOJ typically times big policy changes at meetings when it issues a quarterly outlook report, which are in January, April, July and October. But Ueda did not close out the chance of breaking with that tradition, leaving the door open for a March action.

All the same, April is the more natural option, as the BOJ would produce for the first time growth and price projections for 2026. By forecasting inflation to hit 2% through 2026, it can more easily justify ending negative rates. A big policy shift in March could also unnerve many Japanese firms that close their books at the end of that month.

WHAT ARE RISKS THAT COULD DELAY AN EXIT?

Ueda gave no clear hints on whether the BOJ would indeed act in March or April, suggesting policymakers prefer to have some headroom to delay the move if economic uncertainties remain high.

While the chance of a soft landing for the U.S. economy is rising, the BOJ continues to warn that uncertainty regarding overseas growth remains high. A bigger-than-expected slump in U.S. and Chinese growth could hurt Japan’s export-reliant economy, and prod the BOJ to delay an exit.

Recent weak signs in consumption also highlight the risk that households may start to curb spending if wages do not increase enough to make up for rising living costs.

WHAT HAPPENS WHEN AND AFTER NEGATIVE INTEREST RATES END?

Since taking the helm last year, Ueda has been gradually unwinding his predecessor’s massive stimulus comprised of a short-term rate target of -0.1%, a 0% cap on the set under yield curve control (YCC), and massive asset purchases.

Having watered down YCC last year, the BOJ now has its eyes set on pulling short-term rates out of negative territory.

Ueda said the BOJ will keep monetary policy ultra-loose even after ending negative rates. That means the BOJ could keep short-term rates at zero for a protracted period, and only gradually hike them upon exiting negative rates.

It may also maintain YCC or keep buying enough bonds to avoid any abrupt spike in long-term interest rates. Such an incremental approach would allow the BOJ to better manage, and mitigate, the risks of market upheaval from what will be its first rate hike since 2007.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/explainerwhen-and-how-would-boj-exit-ultraloose-monetary-policy-3281207

Tags: businessExplainer-Whenultra-loose
Previous Post

Thai economy in ‘crisis’ PM says, pledges more stimulus

Next Post

How hedge funds would trade Red Sea supply disruptions

Longtime Tribune outdoors and sports writer Tom Wharton dies at 74 – The Salt Lake Tribune

Beloved Outdoors and Sports Writer Tom Wharton Passes Away at 74

May 8, 2025

Winner–loser plant trait replacements in human-modified tropical forests – Nature

May 8, 2025
WTMS Science & Social Studies wins State Championship at Academic Super Bowl Competition – Valpo.Life

WTMS Science & Social Studies Team Clinches State Championship at Academic Super Bowl!

May 8, 2025
Europe turns its back on the wolf and on science – WWF EU

Europe’s Struggle: Balancing Conservation and Controversy Over Wolves

May 8, 2025
Creative and Thoughtful Gifts for Mom – WCPO 9 Cincinnati

Heartfelt and Unique Gift Ideas to Delight Mom

May 8, 2025
Geophysicists pinpoint location of Yellowstone magma reservoir – Physics World

Geophysicists Uncover the Hidden Secrets of Yellowstone’s Magma Reservoir!

May 8, 2025
Economy: China Extends A Hand To The U.S…. But At What Cost? – Cointribune

China Reaches Out to the U.S.: What Are the Hidden Costs

May 8, 2025
Blackstone River Theatre presents music from Scotland with Cantrip – The Valley Breeze

Experience the Enchanting Sounds of Scotland: Cantrip Takes the Stage at Blackstone River Theatre!

May 8, 2025
Sonde Health and Saaya Health Forge Strategic Partnership to Improve Workforce Performance and Wellness for Blue-Collar Enterprises – Business Wire

Transforming Blue-Collar Workplaces: Sonde Health and Saaya Health Join Forces to Boost Performance and Wellness

May 8, 2025
Friedrich Merz calls for US to ‘stay out’ of German politics – The Guardian

Friedrich Merz Urges the US to Keep Its Distance from German Politics

May 8, 2025

Categories

Archives

May 2025
MTWTFSS
 1234
567891011
12131415161718
19202122232425
262728293031 
« Apr    
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 (592)
  • Economy (603)
  • Entertainment (21,516)
  • General (15,209)
  • Health (9,646)
  • Lifestyle (608)
  • News (22,149)
  • People (606)
  • Politics (610)
  • Science (15,825)
  • Sports (21,114)
  • Technology (15,593)
  • World (593)

Recent News

Longtime Tribune outdoors and sports writer Tom Wharton dies at 74 – The Salt Lake Tribune

Beloved Outdoors and Sports Writer Tom Wharton Passes Away at 74

May 8, 2025

Winner–loser plant trait replacements in human-modified tropical forests – Nature

May 8, 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