|

BoJ Minutes: China's lockdown measures could exert significant downward pressure on Japan exports

The Bank of Japan's March meeting minutes are coming out in stages as follows:

Key notes

One member said markets may turn risk aversive if rising inflation triggers withdrawal of monetary easing by central banks.

Members agreed japan's economy likely to recover on rising external demand, accomodative monetary policy

A few members said spring wage negotiations showed some bright signs such as big firms' wage hikes.

Several members said chance of recent import price rises leading to sustained increase in consumer inflation is low.

China's lockdown measures could exert significant downward pressure on japan exports if they disrupt firms' local production.

Some members said BoJ must support economy's recovery from pandemic fallout as japan not in situation where inflation will sustainably exceed its 2% target.

One member said no need to ramp up stimulus as economy likely to continue recovering

One member said must consider monetary policy response with eye on various scenarios based on expected change in economic, price environment.

Several members said BoJ must conduct market operations to curb rise in long-term interest rates.

USD/JPY update

Meanwhile, the US dollar is firm at the start of the week and it is pushing the yen lower toward the cycle highs. 

About the BoJ minutes

The Bank of Japan publishes a study of economic movements in Japan after the actual meeting. These meetings are held to review economic developments inside and outside of Japan and indicate a sign of new fiscal policy. Any changes in this report tend to affect the JPY volatility. Generally speaking, if the BoJ minutes show a hawkish outlook, that is seen as positive (or bullish) for the JPY, while a dovish outlook is seen as negative (or bearish).

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

GBP/USD pops to three-week highs above 1.3400

GBP/USD accelerates its advance and surpasses the key 1.3400 barrier on Wednesday. That said, Cable clinches new multi-week tops on the back of the resurgence of the selling interest in the Greenback despite persistent tensions in the Middle East.

EUR/USD regains balance and revisits 1.1420

EUR/USD now manages to pick up pace and surpass the 1.1400 barrier on Wednesday. The pair now leaves behind Tuesday’s pullback in response to the US Dollar’s correction despite renewed safe-haven demand, all after President Trump said the MOU with Iran to end the conflict was "over".

Gold trims losses, looks at $4,100

Gold manages to regain some composure and bounce off earlier lows on Wednesday. The precious metal now shifts its focus to the $4,100 mark per troy ounce amid decent losses in the US Dollar and steady geopolitical jitters.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see
The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.
Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.