BOJ to take steps contributing to continuation of powerful easing


Reuters reports the following headlines on the Bank of Japan’s (BOJ) economic assessment.

To take steps contributing to continuation of powerful easing.

To expand eligible collateral for BOJ's provision of credit.

Inflation likely to gradually accelerate toward 2 pct.

It will take longer than intended to achieve 2 pct inflation.

Decided to clarify resolve to continue powerful easing taking into account impact of sales tax hike, uncertainty over overseas economies.

To maintain powerful easing to support improvements in output gap while ensuring economic, financial stability.

Pace of improvement in prices, inflation expectations has remained slow compared to improvements in economy, job market.

Medium-, long-term inflation expectations likely to rise gradually.

Risks to price outlook skewed to downside.

Risks to economic outlook skewed to downside.

Economy's momentum for hitting price goal sustained but lacking strength.

Japan's economy expanding moderately though overseas slowdown affecting exports, output.

Medium- to long-term inflation expectations have been more or less unchanged.

No sign so far of excessively bullish expectations in asset markets, financial institutions' activities.

Prolonged downward pressure on financial institutions' profits from low rates could destabilise financial system.

Risk of financial system destabilising not big for now as financial institutions have sufficient capital bases.

BOJ will relax terms and conditions for securities lending facility.

Will consider introduction of ETF lending facility.

ETF lending facility would make it possible to temporarily lend ETFs to market participants.

BOJ Forecasts:

Median core CPI forecast for fiscal 2020/21 at +1.4% vs. 1.5% in Jan.

Median core CPI forecast for fiscal 2019/20 at +1.1% vs. 1.1% in Jan.

Median real GDP forecast for fiscal 2020/21 at +0.9 % vs. +1.0% projected in Jan.

Median real GDP forecast for fiscal 2019/20 at +0.8% vs. +0.9% projected in Jan.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD holding onto gains amid trade wars, ahead of German IFO

EUR/USD is trading around 1.1150, consolidating its gains after the escalation in US-Sino trade wars sent US yields and the greenback lower. German IFO Business Climate is next.

EUR/USD News

GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.

GBP/USD News

USD/JPY recovers farther from multi-year lows on Trump’s positive trade-related comments

The incoming positive trade-related comments dented the JPY’s safe-haven demand. Improving global risk sentiment helped the pair to recover around 150-pips intraday. Investors now look forward to the US durable goods orders data for a fresh impetus.

USD/JPY News

Gold: Risk-off rally stalls after US, China aim to calm trade war fears

Gold retreats from multi-year tops, fills weekly bullish gap on positive trade headlines

Gold News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •