Arab Today, arab today bank of japan holds fire on stimulus despite recession
Last Updated : GMT 11:11:32
Arab Today, arab today
Arab Today, arab today

Held fire on expanding its monetary easing programme

Bank of Japan holds fire on stimulus despite recession

Arab Today, arab today

Arab Today, arab today Bank of Japan holds fire on stimulus despite recession

Overseas shipments by value declined 2.1%
Tokyo - Arab Today

Japan's central bank on Thursday held fire on expanding its monetary easing programme, even as the world's third-largest economy slipped into its second recession in two years and monthly exports fell.

Prime Minister Shinzo Abe has been trying since late 2012 to revitalise Japan's economy through his signature "Abenomics" policies, with aggressive monetary easing by the Bank of Japan (BoJ) at its foundation.

Some analysts anticipate the BoJ will be forced to expand its massive 80 trillion yen ($665 billion) annual asset-buying scheme, launched more than two years ago to kickstart growth and end deflation -- the chronic decline in prices that has sapped growth for years.

But the BoJ opted to do nothing at the end of its two-day policy meeting, as it did last month -- when expectations were even higher it would take action but before news Monday that growth in gross domestic product (GDP) contracted for a second straight quarter.
"While the Bank of Japan literally ignored the renewed fall in (the third quarter) GDP in today’s policy statement, we think that a likely moderation in underlying inflation will eventually force policymakers to introduce more stimulus," Marcel Thieliant, Japan economist at Capital Economics said in a statement.

Asked about his views on the consecutive declines in GDP growth -- the technical definition of a recession --  BoJ Governor Haruhiko Kuroda told a news conference that the economy is better than the figures suggest.

Consumer spending is "resilient" and exports broadly positive, meaning that "final demand as a whole is rising", he said.

- 'Gradual recovery path' -

"This is in line with the evaluation that Japan's economy is on a gradual recovery path."
And in data released earlier Thursday, the finance ministry announced that exports declined in October for the first time in more than a year, as economic growth in giant neighbour China slows.

Overseas shipments by value declined 2.1 percent, the first fall since August of last year, while the value of exports by Japanese companies to China shrank 3.6 percent in October, the ministry said, as growth in the world's second-largest economy slows.

"Japan's economy has continued to recover moderately, although exports and production have been affected by the slowdown in emerging economies," the bank said in a statement Thursday.

"Inflation expectations appear to be rising on the whole from a somewhat longer-term perspective, although some indicators have recently shown relatively weak developments," it said in the dry, carefully phrased language of global central banks.

The BoJ last month was forced to cut its growth outlook and pushed back the timeline for a key inflation target as earlier, more optimistic predictions failed to come true.

Kuroda said the timeline for the central bank's two-percent inflation target "depends on crude oil prices," reiterating that it now expects the achievement will come around late next year or early 2017.

The BoJ's bond-buying scheme has led to a sharp decline in the yen, seen largely as a positive as it can make Japanese products cheaper overseas.

But a lacklustre global economy, characterised by the slowdown in China and weakness in emerging markets, are posing challenges to Abe's play for a recovery.

Last month, the International Monetary Fund cut its growth forecast for the world economy for this year to 3.1 percent from the previous 3.3 percent, warning of increasing risks from the slowdown in China.
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*

Arab Today, arab today bank of japan holds fire on stimulus despite recession Arab Today, arab today bank of japan holds fire on stimulus despite 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*

Arab Today, arab today bank of japan holds fire on stimulus despite recession Arab Today, arab today bank of japan holds fire on stimulus despite recession

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
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 Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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