Arab Today, arab today bank of japan holds fire on stimulus despite recession
Last Updated : GMT 10:09:36
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

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 Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank

GMT 18:23 2017 Sunday ,19 February

Darwesh vows to provide job opportunities for youth

GMT 12:10 2017 Sunday ,19 February

Welcomes the F&B solution of the future

GMT 10:06 2017 Friday ,17 February

South Korea's Hanjin Shipping declared bankrupt

GMT 09:26 2017 Friday ,17 February

Samsung's history tainted by run-ins with the law

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
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