• Friday, December 6, 2019 - 02:55 MNI DATA IMPAT: BOJ Oct Consumption Index Drops Sharply 0

    TOKYO (MNI) - The Bank of Japan's Consumption Activity Index posted the first month-on-month drop in three months, down 7.4% on a seasonally adjusted basis in October, data released Friday showed.

    The fall came after upwardly revised gain of 3.8% in September and a downwardly revised rise of 2.5% in August.

    Private consumption was hit hard by a post-tax hike drop and a string of natural disasters in October that slowed demand.

    The October index fell 4.3% on quarter, reversing the 0.8% gain in the Q3 and +0.7% in Q2.

    The BOJ will likely lower its assessment of private consumption at its two-day policy-setting meeting on Dec.

  • Thursday, December 5, 2019 - 21:29 MNI DATA IMPACT: Japan Oct Wages Rise; Real Pay Positive 0

    --Japan Oct Average Wages +0.5% Y/Y, 2nd Straight Rise; Sep +0.5%
    --Japan Oct Real Average Wages +0.1% Y/Y; 2nd Straight Rise; Sep +0.2%
    --Japan Oct Base Wages +0.6% Y/Y, 4th Straight Rise; Sep +0.3%
    --Japan Oct Overtime Pay 0.0% Y/Y, Sep -0.2%
    --Japan Oct Bonuses, Other Special Pay -4.4% Y/Y, Sep +9.1%

    TOKYO (MNI) - Average wages in Japan rose 0.5% year-on-year in October following a 0.5% rise in September, with real wages staying in positive territory, according to preliminary data released Friday by the Ministry of Health, Labour and Welfare.

    Here are the...

  • Thursday, December 5, 2019 - 14:04 MNI DATA IMPACT: Vancouver Homes 9X Income Underline BOC Worry 0

    By Greg Quinn

    OTTAWA (MNI) - Vancouver home prices are nine times the income of owners according to a government study, the kind of imbalance that has kept the BOC from cutting interest rates.

    The city's median assessed property value of C$889,000 last year compares with income of C$92,600, according to a study published Thursday by Statistics Canada. That gap is greater than the ratio of 5.7 for Toronto and 3.1 in Ottawa.


    The BOC has held policy rates at a G7 high 1.75% this year, in large part because of concerns about re-igniting a housing boom in Vancouver and Toronto that has led to a rise in heavily indebted households.

  • Thursday, December 5, 2019 - 08:00 MNI POLICY: Lane: BOC `Charting Our Own Course' Amid Fed Cuts 0

    By Greg Quinn

    OTTAWA (MNI) - Bank of Canada Deputy Governor Tim Lane said there is "no reason" to follow Fed rate cuts because domestic spending has held strong amid global trade wars.

    The economy is close to full capacity and inflation will temporarily move above the BOC's 2% target next year on gasoline prices, Lane said Thursday. Business investment has been surprisingly strong and wage gains are helping consumer spending, signs growth will pick up again after being slowed by a drop in exports in the third quarter.

    The speech "Charting Our Own Course" defended keeping one of the world's highest policy rates as the Fed cut three times while Japan and Europe dive further into extraordinary stimulus.

  • Wednesday, December 4, 2019 - 22:08 MNI POLICY: BOJ Harada Voices Concern Over Premature Rate Hike 0

    OITA, Japan (MNI) - Bank of Japan board member Yutaka Harada voiced concern on Thursday on the impact of a premature rate hike, and emphasized the need to keep the current accommodative monetary policy.

    "If the BOJ were to raise interest rates now, this would revive the deflationary mindset and consequently further delay increases in prices and interest rates," Harada told business leaders in Oita City.

    "This would not benefit the banking sector either."

    Harada didn't elaborate on the current economic climate, which is dominated by debate on downside risks to economic activity and prices, and the outlook for monetary policy.

    Harada, although one of the BOJ's more dovish board members, did not propose more...

  • Wednesday, December 4, 2019 - 11:14 MNI POLICY: Fed Reviewing Stress Test Impact on Repo Squeeze 0

    By Jean Yung

    WASHINGTON (MNI) - The Federal Reserve is reviewing how post-crisis liquidity stress tests may have created a preference for bank reserves over liquid assets like Treasuries and disrupted repo markets, Vice Chair Randy Quarles said.

    "We have identified some areas where our existing supervision of the regulatory framework the structure of the framework itself may have created some incentives that were contributors" to extreme volatility in repo markets in September, he told the House Financial Services Committee on Wednesday.