Bank of Japan

  • 2020-07-09 01:36


    --Second Straight Meet All Nine Regions Cut View

    TOKYO (MNI) - All nine of Japan's regions lowered their economic assessment from three months ago, as the coronavirus impacted personal spending, production and capital investment, the Bank of Japan's quarterly regional economic report showed Thursday.

    It is the second straight time that all nine regions lowered their assessment from their previous meeting.

    "According to assessments from regions across Japan, all nine regions revised down their assessments from the previous ones, as was the case in April 2020,due to the impact of the novel coronavirus (COVID-19), and reported that their economy had deteriorated or had been in a severe situation," the July report said.

    Many branch managers noted the drop in the three m

  • 2020-07-08 22:00


    TOKYO (MNI) - Bank of Japan Governor Haruhiko Kuroda has maintained his cautious view that economic conditions in Japan are expected to remain severe due to the impact of the coronavirus.

    "Looking ahead, economic activities are expected to resume but (the) severe situation will likely continue for the time being due to the infectious disease," Kuroda said at the opening of the quarterly branch managers' meeting on Thursday.

    He also said the BOJ will not hesitate to take additional policy easing measures if they are necessary to support the economy, while keeping a close eye on the impact of the coronavirus.

    However Kuroda did not elaborate on when or how the bank would consider additional policy easing.

    --MONETARY POLICY

    Kuroda said the BOJ continues to

  • 2020-07-08 02:31


    --BOJ Officials See Homeworking May Lead To Job Losses

    TOKYO (MNI) - The BOJ sees the labor market worsening from current levels, even if the economy recovers through H2, pushing the unemployment rate higher and worsening the output gap.

    At present, the BOJ will not take additional policy easing measures, believing recent measures to get financing in place for small and medium-sized companies will offer at least some support for employees, MNI understands.

    Pre-pandemic, the BOJ highlighted the tightness of labor market condition, or labor shortages, was, along with an ageing population, in part a bi-product of accommodative policy and helped keep upward pressure on wages and inflation.

    One concern is that an increase in unemployment levels will wei

  • 2020-07-03 02:02


    TOKYO (MNI) - Japan's positive output gap has been estimated at 0.29 percentage points in Q1, sharply narrowing from 1.07 pp in Q4, the Bank of Japan said Friday.

    The output gap is expected to narrow further in the coming quarters as the labor market shortage has eased.

    --The positive output gap below 1.00 pp was the first since Q3 2017 when it

    was at +0.85 pp.

    --The result was the 14th straight quarter with a positive output gap, which, in theory, should increase pressure on consumer prices and inflation expectations, albeit with a lag of a few quarters.

    --The BOJ's estimate of the output gap, based on capital and labour stocks, was wider than the Cabinet Office's latest estimate at -2.4 pp, a figure based on revised Q1 GDP data of a 0.6% fall q/q, or an annualize

  • 2020-07-01 05:26


    TOKYO (MNI) - The Bank of Japan will need to take action swiftly if needed as it keeps a close eye on economy and virus spread, incoming board member, Toyoaki Nakamura, said Wednesday.

    However, he doesn't see the need for the BOJ to take additional action at present.

    "The BOJ must provide necessary liquidity in order to prevent firms from facing (cash) problems," Nakamura, a former director of Hitachi, told reporters after taking office earlier in the day.

    The economic climate remains severe as demand had disappeared due to the spread of the coronavirus, he said.

    It is unlikely the economy will return to levels seen 2019 immediately but overall the economy is expected to rise on a q/q basis.

    --INFLATION TARGET

    Nakamura said it was appropriate for t

  • 2020-06-30 04:36


    --BOJ Ups Upper End of Short-, Medium-Term JGB Buying, Keeps Ops Frequency

    TOKYO (MNI) - The Bank of Japan said Tuesday it will increase the upper end of its short-, medium- and long-term government bond buying operations in July but left the frequency of all bond buying operations unchanged.

    The upper end of short-term JGB buying operations was increased to JPY600 billion in July from JPY500 billion and the upper end of medium-term bond buying was also increased to JPY500 billion from JPY450 billion in June.

    Also, the upper end of long-term bond buying was increased to JPY600 billion in July from JPY550 billion in June.

  • 2020-06-29 22:10


    By Hiroshi Inoue

    TOKYO (MNI) - Japan's industrial production fell for a fourth straight month in May, declining 8.4% m/m in May after a 9.8% fall in April and a 3.7% drop in March. However, policymakers expect output to pick up in both June and July as economies reopen at home and abroad.

    Although a recovery is expected in coming months, it will remain dampened somewhat by the continued sluggish global demand for autos and capital goods.

    Production for all items fell in May although the decrease was mainly driven by lower output of autos, production machinery, iron and steel and nonferrous metals, all in line with May's weaker export data.

    Car production fell 23.2% m/m in May for a fourth straight drop but slowing from a 36.6% fall in April.

  • 2020-06-29 21:09


    TOKYO (MNI) - A former Bank of Japan executive director Eiji Maeda is set to assume the presidency of the Chibagin Research Institute Corporation on Tuesday.

    Chibagin Research Institute is a thinktank of major regional bank Chiba Bank in Chiba Prefecture.

    Maeda was formerly executive director in charge of monetary policy and the chief economist at the BOJ. His four year term ended on May 10.

    --MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
    --MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

    [TOPICS: MMJBJ$,M$A$$$,M$J$$$]

  • 2020-06-26 02:07


    By Hiroshi Inoue

    TOKYO (MNI) - Bank of Japan will now build a slower recovery in exports into their modelling as, in line with normal practice, officials take the International Monetary Fund's lowered global growth forecasts into the reckoning, MNI understands.

    Although the bank expects lower exports to weigh on industrial production and economic growth, although much of the downward pressure will be smoothed by the government's fiscal measures.

    Although the BOJ takes the IMF forecast as read, they do accept there is much to take note of in the June update, with a variety of opinions on different countries, some optimistic, some pessimistic.

    --ALL REGIONS

    The IMF has cut its 2020 global GDP forecast to -4.9% from -3%, saying every region will contract for the

  • 2020-06-25 21:32


    By Hiroshi Inoue

    TOKYO (MNI) - Tokyo core inflation rose 0.2% y/y in June for the second straight rise as lower prices for goods prices were offset by smaller decline in energy item, underlining the Bank of Japan's view that momentum towards the 2% price target has lost momentum.

    Core prices rose 0.2% in May after falling 0.1% in April.

    Tokyo data points to a weak nationwide June inflation rate (due July 21), although the core number could pick up from May's 0.2% fall.

    Bank of Japan officials remain watchful and still see momentum towards the 2% price target as temporarily lost.

    Japan's core inflation rate "is likely to be negative for the time being, mainly affected by Covid-19 and the decline in crude oil prices.