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  • 2020-02-05 12:15


    By Greg Quinn and Anahita Alinejad

    OTTAWA (MNI) - The Bank of Canada is studying a nominal GDP target and putting more weight on past inflation during a review of its 2% inflation goal that's up for renewal next year, Senior Deputy Governor Carolyn Wilkins said Wednesday.

    The global use of tools like QE and negative rates is also being studied, and it's still unclear what their long-term effects are, Wilkins said in a speech in Toronto. Canada avoided most of those extraordinary tools in the 2008 financial crisis, and some of them are still in use abroad more than a decade later.

  • 2020-02-04 21:41


    MATSUYAMA, Japan (MNI) - The BOJ still sees the global economy recovering gradually but warned of downside risks, including coronavirus, Bank of Japan Deputy Governor Masazumi Wakatabe said Wednesday.

    "Japan's economy seems to have briefly registered a significant deceleration in the October-December quarter.

  • 2020-02-04 11:58


    --Former Fed Chair Sees A Less Dynamic American Economy

    WASHINGTON (MNI) - Former Federal Reserve Chair Janet Yellen on Tuesday called China's coronavirus a significant risk to the global economic outlook this year.

    "It is a potential influence on the global economy, it seems certain to have a significant effect, at least for a quarter or two, on Chinese growth," Yellen said. "China is such a significant piece of the global economy. That's bound to have spillovers."

    "We don't know where this is going. To my mind, it is clearly a source of uncertainty and risk to the global outlook," she said at a panel discussion at George Washington University in Washington.

  • 2020-02-04 01:55


    TOKYO (MNI) - Japan's economy is seen contracting in Q4, weighed by weak capital investment and slower domestic spending. It would be the first contraction in 5 quarters and comes after the Oct. 1 sales tax hike and a string on natural disasters that hit the country.

    Exports remained weak during the period, although net exports were a significant boost to the economy as imports fell sharply.

    Economists are looking for preliminary Q4 GDP to fall 1.0% q/q, or an annualized -3.8%, down sharply from the 0.3% q/q and +1.8% y/y gain in Q3. It would be the first quarter of negative growth since Q3 2018.

    Forecasts ranged from -0.8% to -1.9% q/q, or -3.0% to -7.5% at an annualized pace.

    The Cabinet Office will release the data on Feb.

  • 2020-02-03 15:00


    By Evan Ryser

    WASHINGTON (MNI) - The U.S. Treasury said Monday it expects to borrow USD367 billion during the first quarter of 2020, USD22 billion less than previously estimated.

    The department said it assumes an end-of-March cash balance of USD400 billion.

    Treasury also expects to pay down USD56 billion in net marketable debt in the April to June period. In the fourth quarter of 2019, Treasury borrowed USD330 billion through credit markets, slightly below estimates in October, and ended the quarter with a cash balance of USD404 billion.

    The decrease in borrowing resulted "primarily from the lower end-of-quarter cash balance and higher net issuances of State and Local Government securities," Treasury said in a statement.

  • 2020-02-03 00:37


    By Archie Zhang

    BEIJING (MNI) - The People's Bank of China is expected to lower the rate for Medium-term Lending Facility (MLF) in February and effectively guide the Loan Prime Rate (LPR) lower, according to a member of a PBOC committee.

    Ma Jun, a member of the Monetary Policy Committee under the central bank, told state-media Financial News that current liquidity in the banking system is "very ample" as it is CNY900 billion higher than the last post-Chinese New Year period, and beyond the market's expectation.

    The PBOC injected a net of CNY150 billion through open market operations on Monday while lowering the money market rates by 10 bps to counter the economic impact of the Coronavirus epidemic.

    In the same interview posted on PBOC's official social media accoun

  • 2020-01-31 03:28


    --But BOJ Ups Upper End of Longer-End JGB Buying Operation

    TOKYO (MNI) - The Bank of Japan said Friday that it would reduce the frequency of its longer-end Japanese government bond buying operations to 2 in February from 3 in January.

    The decision is aimed at coping with the recent flattening curve and reflects that the BOJ sees steepening curve of super longer-end bond yield desirable.

    The BOJ increased the upper end of longer-end bond buying, such as JGBs with a remaining life of 10-to-25 years to JPY200 billion in February from JPY150 billion in January.

    The BOJ left the frequency of other bond buying operations unchanged at 4 in February, saying it may increase the frequency as needed.

    It also said The Bank will conduct purchases in a flexible manner, taki

  • 2020-01-30 19:25


    --Japan Jan Tokyo Core CPI +0.7% Y/Y; MNI Median +0.8%; Dec +0.8%
    --Japan Jan Tokyo Core-Core CPI +0.9% Y/Y; Dec +0.9%
    --Japan Jan Tokyo CPI Energy Costs -1.3% Y/Y; Dec -1.2% --Japan Jan Tokyo CPI

    Food Ex-Perishables +1.9% Y/Y; Dec +1.8%

    --Japan Jan Tokyo CPI Household Durable Goods +0.4% Y/Y; Dec +3.9%

    TOKYO (MNI) - The annual consumer inflation rate in Tokyo, a leading indicator of the national average, rose 0.7% y/y in January, propped up by high prices for food ex-perishables and service prices, data from the Ministry of Internal Affairs and Communications showed Friday.

    The gain slowed from +0.8% in December due to lower prices for household durable goods on the back of weak consumer demand.

    The key points from the latest Tokyo CPI data:

    --The Tokyo core cons

  • 2020-01-30 13:54


    --Independent Staff Paper Says Household Credit Biggest Challenge

    OTTAWA (MNI) - Central banks can blunt the "tail risk" of an economic slump if their policy moves aren't so dramatic they throw GDP growth off course, according to a paper by BOC researchers published Thursday.

    Macroprudential regulations can head off the rapid expansion of household credit, the major growth risk in the medium term, according to an independent paper by Thibaut Duprey and Alexander Ueberfeldt in the BOC's financial stability branch.

    Their work may help policymakers communicate reasons why they would choose a policy aimed more toward longer-term financial risks than economic growth, the authors wrote.

  • 2020-01-29 15:24


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: I wanted to ask about a Vice-Chair Quarles recent speech on bank supervision in which he layed out some suggestions for making changes to the supervisory regime. I wanted to ask, do you agree with his approach and are there any plans to codify some of these suggestions later in the year?

    A: So, I do agree that the principles that he articulated of firm and fair supervision and effective transparency and communications. I also think it's a good thing that we would have brighter lines to define our list of supervisory portfolio, which we haven't really had to date.