This development positions Japan as the final major central bank to move away from negative rates, signalling the end of a global trend in which economies were buoyed by inexpensive capital and novel financial strategies. "We have transitioned back to a standard monetary policy that focuses on short-term interest rates, aligning with practices of other…
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About 3,300 employees of the Bank of Kyoto are being educated on the significance of interest rates, the process of determining lending rates, and the implications of rising interest rates for both the bank and its clientele through this program. The curriculum includes insights from veteran executives familiar with handling business in a positive interest…
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Since the start of March, the yen has strengthened its position by 1% against the US dollar. This reportedly makes foreign acquisitions in sectors such as finance and technology more affordable. Reuters cited Ashurst partner Natsuko Ogawa, who commented: An increase in interest rates in Japan may be positive for the yen ... and make…
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With inflation consistently surpassing the BOJ's target of 2% for over a year, investors widely expect the central bank to elevate short-term interest rates from below zero in the upcoming week or by April. The sources noted that the transition away from negative rates is expected to coincide with the termination of the YCC policy,…
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In a unanimous decision, the central bank opted to keep interest rates at -0.1% while adhering to its yield curve policy, referencing the 1% upper limit for 10-year Japanese government bonds. It reaffirmed its view that the economic uncertainty is “extremely high,” and it is committed to taking "additional easing steps if necessary.” Don’t miss…
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Machinery and precision instrument stocks led the minor increase in the market as the US dollar briefly climbed to the 146-yen mark in Tokyo. Investor response to the Tankan survey indicates that the latest US inflation data might not be enough to spur the US Federal Reserve to initiate interest rate reductions soon, much to…
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The primary cause for this shift is a recent overnight announcement from the Bank of Japan (BoJ). In this statement, the BoJ retracted its previous indication that it might abandon negative policy rates for the first time in many years, a stance it has now decided against. This change in position by the BoJ has…
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Additionally, the recent agreement between Israel and Hamas to pause fighting has limited the upside potential for the JPY as a safe haven currency. Interestingly, the recent weakening of the USD may reduce the need for the Bank of Japan (BOJ) to intervene in the foreign exchange (FX) markets if this trend continues. Furthermore, Japanese…
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‘Central bank watching’ will be the name of the game this week, with financial markets remaining highly sensitive to any shifts in the interest rate outlook, particularly given the recent ramping up of energy prices. The move higher in energy costs was born out in the US inflation data last week, which could nudge the…
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As a result, Japanese 10-year bond yields saw the highest increase since 2014, while the USD/JPY currency pairing plunged to a new low. Investors will be waiting to gain more information from U.S. inflation data, which is due to be released from the Federal Reserve Bank later this week. Don’t miss out the latest news,…
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