bank of japan deflates with disappointing stimulus
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

With underwhelming tweaks

Bank of Japan deflates with 'disappointing' stimulus

Arab Today, arab today

Arab Today, arab today Bank of Japan deflates with 'disappointing' stimulus

The Bank of Japan has surprised markets with only minor tweaks
Tokyo - Arab Today

The Bank of Japan deflated investor spirits Friday with underwhelming tweaks to its giant stimulus plan that fanned worries its monetary policy arsenal is almost empty.

The central bank did not expand a massive bond-buying programme -- a cornerstone of its years-long battle against deflation -- despite hopes for a one-two punch to boost the sluggish economy, after Tokyo unveiled a huge spending package this week.

Japanese officials are under pressure as the fate of Prime Minister Shinzo Abe's bid to reignite the world's number three economy, dubbed Abenomics, looks increasingly gloomy.

"The market had expected more than what the BoJ announced today, which triggered some disappointment," said Yosuke Hosokawa, head of the forex sales team at Sumitomo Mitsui Trust Bank.

"This shows the ceiling for monetary policy."
The BoJ's gathering was its first since Britain's shock vote to quit the European Union. 

The decision last month hammered financial markets and sparked a yen rally that is threatening corporate Japan's bottom line -- fanning concerns about growth.

Government figures on Friday morning did little to soothe those worries, with inflation and household spending falling last month. 

Business confidence is sitting at its lowest levels since Abe swept to power in late 2012 on a ticket to fix the once-booming economy.

The weak readings Friday will aggravate worries about second-quarter economic growth. Japan dodged a recession in the first three months of the year.

The BoJ's plan is to double purchases of exchange-traded funds to about six trillion yen annually, and inflate a US dollar lending programme for Japanese firms doing business overseas.

ETFs are securities linked to a share index or other investment, such as commodities or bonds, that trade like common stock.

- 'Wishy washy' -

But the central bank opted to leave its 80 trillion yen annual bond-buying programme unchanged, amid worries that expanding the scheme could spark volatility in Japan's debt markets.

The BoJ also held off cutting interest rates deeper into negative territory, after banks hit back against the plan first announced in January.
Negative rates are meant to encourage lending to people and businesses by effectively charging banks to keep excess reserves in the BoJ's vaults.

But lenders have complained they are eating into their financial results.

Some analysts said the BoJ likely felt compelled to take some kind of action Friday in a nod to the government.

"The decision was rather wishy washy, as it was far below market expectations which have gone through the roof" in recent weeks, said Kohei Iwahara, an economist at Natixis Japan Securities.

BoJ chief Haruhiko Kuroda said the bank was going to launch a "comprehensive assessment" of its own growth policies, without giving details.

Some analysts saw the review as possibly signalling that further easing was in the pipeline -- a point Kuroda reinforced by saying the bank still had options to counter any downturn in the economy.

"We have not reached the limit" in terms of policy moves, he told reporters Friday.
Tokyo on Wednesday announced a whopping 28 trillion yen package aimed at kickstarting growth in the wake of the Brexit shock and a slowdown in emerging economies.

Analysts questioned how much of it was immediate fresh spending, and the government has so far offered few specific details.

Japan's spend-for-growth policies have set it apart from some of its rich nation counterparts, including Germany which has been reluctant to endorse them, seeing it as an ineffective way to stimulate the economy.

Abe's growth plan -- a mix of massive monetary easing, government spending and red-tape slashing -- initially brought the yen down from record highs and set off a stock market rally.

But promises to cut through red tape have been slower, and efforts to generate a sustained recovery have failed to take hold.

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 deflates with disappointing stimulus bank of japan deflates with disappointing stimulus

 



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 deflates with disappointing stimulus bank of japan deflates with disappointing stimulus

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms
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