bank of japan pushes on with stimulus as fed eyes rate hike
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Bank of Japan pushes on with stimulus as Fed eyes rate hike

Arab Today, arab today

Arab Today, arab today Bank of Japan pushes on with stimulus as Fed eyes rate hike

The Bank of Japan has left its negative interest rate policy in place
Tokyo - Arab Today

Japan's central bank pressed ahead with its ultra-loose monetary policy Thursday on the back of an improving economy, as its overseas counterparts start turning off the stimulus taps.

The Bank of Japan held steady after a meeting with its chief giving no clues on when policymakers may pull back on the growth programme, with the world's third biggest economy enjoying its longest expansion in more than a decade.

The bank's widely expected decision came a day after the US central bank said it would start to wind down its crisis-era stimulus and hinted at another rate hike by the end of the year.

Markets are also keeping a close eye on the European Central Bank for clues as to when it will start to take its foot off the stimulus pedal and raise borrowing costs.

But with consumer prices still a long way off the BoJ's two-percent inflation target, governor Haruhiko Kuroda said the bank would leave its huge 80 trillion yen ($712 billion) annual asset-buying plan and negative interest rate policy in place.

"Our country's inflation rate is still far from our target so it's only natural that our monetary easing policies are different," from the US and Europe, Kuroda told reporters at a post-meeting press briefing.

"I see no problem with that," he added.

Economists have grown increasingly sceptical about the BoJ's ability to slay years of on-off deflation, and warned about the possible negative impact of exiting the stimulus scheme.

But Kuroda said the impact would be "nothing extraordinary" once the BoJ eventually starts to wind down its stimulus.

"Inflation remains a long way below its projections, so further reductions in the (BoJ's) forecasts next month are all but guaranteed," Marcel Thieliant at research house Capital Economics said in a commentary.

"Policy tightening remains a long way off," he added.

- Wage hikes -

Earlier Thursday, the bank pointed to Japan's improving prospects, after earlier figures showed the economy grew 0.6 percent in the second quarter -- capping off six straight quarters of gains, the best in over a decade.

The growth has been driven mainly by surging exports including smartphone parts and memory chips, as well as investments linked to the Tokyo 2020 Olympics.

The BoJ raised its growth outlook for the economy at its July meeting.

But it slashed its annual inflation forecast and once again delayed its timetable for hitting its price target to sometime in the year to March 2020, about five years later than planned.

Officials had originally set in 2013 a two-year timeline when unveiling the bank's massive asset buying programme as part of Prime Minister Shinzo Abe's push to kickstart Japan's once-booming economy, dubbed "Abenomics".

Tokyo's years-long effort to kickstart growth -- a blend of massive monetary easing, government spending and red-tape slashing -- stoked a stock market rally, weakened the yen and fattened corporate profits.

But the economy was unable to gain a firm footing until recently. And while Japan's job market is tight, individual spending -- which accounts for more than a half of the country's gross domestic product -- has struggled to pick up.

Cash-rich companies have been reluctant to deliver big wage hikes, despite labour shortages.

"The tighter labour market is not yet providing the hoped-for pick up in wage growth," Thieliant said.

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of japan pushes on with stimulus as fed eyes rate hike bank of japan pushes on with stimulus as fed eyes rate hike

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bank of japan pushes on with stimulus as fed eyes rate hike bank of japan pushes on with stimulus as fed eyes rate hike

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday