boj keeps economic outlook despite japan recession
Last Updated : GMT 13:14:30
Arab Today, arab today
Arab Today, arab today

BoJ keeps economic outlook despite Japan recession

Arab Today, arab today

Arab Today, arab today BoJ keeps economic outlook despite Japan recession

Bank of Japan (BOJ) Governor Haruhiko Kuroda
Tokyo - AFP

The Bank of Japan on Wednesday kept its upbeat economic view despite data showing the country had slipped into recession, which prompted Premier Shinzo Abe to delay a scheduled tax hike and call a snap election.
Following a two-day meeting, the BoJ stood pat on monetary policy -- after expanding its already huge stimulus package last month -- as markets eyed governor Haruhiko Kuroda's reaction to Tokyo's announcements.
But Kuroda -- Prime Minister Abe's hand picked central bank chief -- said little about the issue at a post-meeting press briefing, despite earlier calls for Tokyo to press on with tax rises aimed at generating fresh revenue to trim an enormous national debt.
"I'm not going to comment on a decision made by the government," Kuroda told reporters.
"But, generally speaking, it's important to maintain confidence in Japan's finances. I still expect the government will implement measures" to pay down the debt.
He also dismissed suggestions that the BoJ's move to expand its vast easing plan was based on the assumption Tokyo would lift the country's taxes next year.
"I never thought we should have waited more before expanding our monetary easing," Kuroda said.
Tokyo's decision -- and Abe's call on Tuesday for a snap election ahead of a party leadership vote next year -- came after a sales levy hike in April slammed the brakes on growth just as the deflation-plagued economy appeared to be turning a corner.
The perennially optimistic Kuroda echoed a BoJ statement earlier Wednesday which said the world's number three economy was still on track for a recovery.
- Snap election, tax hike delay -
Despite its bullish view, however, the central bank was more cautious on inflation expectations, saying that they "appear to be rising on the whole from a somewhat longer-term perspective".
"While board members noted that some weakness on the production side remained, they upgraded their views on exports, housing investment and private consumption," said Marcel Thieliant from Capital Economics.
"However, the BoJ now expects inflation to remain at current levels of 1.0 percent for the time being, rather than to pick up as in previous statements."
Thieliant added that "the statement suggests additional stimulus in the near-term is not on the cards."
Tsuyoshi Ueno, a senior economist at NLI Research Institute, was surprised at the bank's upbeat tone.
"The growth data have been negative for two quarters in a row, which shows that the economy is in a bad state," he said.
"It seems a bit strange that the central bank kept its view that Japan's economy is recovering."
In forex markets, the yen weakened further with the dollar at a seven-year high of 117.38 yen after the announcement, up from 116.83 yen in New York.
The BoJ's decision means it will keep trying to pump cash into the banking system at an annual pace of 80 trillion yen ($682 billion), a scheme designed to stimulate the economy.
Last month, the bank surprised markets by announcing it would expand asset purchases by as much as 20 trillion yen annually to the current level, sending the yen into freefall.
It also slashed its economic growth forecast by half and trimmed consumer price expectations as a much-touted 2.0 percent inflation target looked increasingly out of reach.
The GDP data on Monday showed Japan's economy shrank 0.4 percent, or at an annualised rate of 1.6 percent, in the July-September quarter, dealing a huge blow to Abe's bid to turn around years of tepid growth, dubbed Abenomics.
The reading was well below market expectations for a 0.5 percent expansion, and comes after Japan suffered a 1.9 percent contraction in the April-June quarter -- or 7.3 percent at an annualised rate -- as consumers and firms capped their spending.

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*

boj keeps economic outlook despite japan recession boj keeps economic outlook despite japan recession

 



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*

boj keeps economic outlook despite japan recession boj keeps economic outlook despite japan recession

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
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
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday