inflation

An earth mover prepares the foundation of new apartment block development in the waterfront suburb of Rushcutters Bay
An earth mover prepares the foundation of new apartment block development in the waterfront suburb of Rushcutters Bay, Australia, December 13, 2016. REUTERS/Jason Reed

May 26, 2019

By Swati Pandey

SYDNEY (Reuters) – Australia’s crumbling housing market looks set to stabilize over coming months as hopes of interest rate cuts and loosening of mortgage rules have boosted buyer inquiries, property and mortgage brokers say.

Home prices across Australia have fallen rapidly since late-2017, heightening worries among policymakers that a prolonged decline would deal a severe blow to the country’s already slowing economy.

While industry watchers say a return to boom times is unlikely anytime soon, they point to signs suggesting a bottoming-out for the sector is imminent.

Economists, including those at AMP and Citibank, last week re-jigged their forecasts to pencil in a less steeper decline in home prices than previously predicted. Several property and mortgage brokers who spoke to Reuters on Friday also said they have seen a noticeable jump in customer inquiries, including from those buying a home for investment.

“The sun is shining all over again now,” said mortgage broker Tony Bice at Sydney-based Finance Made Easy.

Bice cited the unexpected re-election of the country’s pro-business coalition government a little over a week ago and predictions of an Australia rate cut as soon as next month for the improvement in sentiment.

The Australian Prudential Regulation Authority’s (APRA) proposal to ease stress test on mortgages was the “most interesting” policy change, Bice said. Analysts expect the regulator’s move would boost customers’ borrowing capacity.

“My inquiries since the last week has risen dramatically. I have written 11 loans in the last 4 days. In the past, you’d be lucky to write 11 loans in two weeks.” Bice told Reuters.

“A lot of my clients are holding off until June to see what the Reserve Bank does. If they drop the cash rate, I expect banks to follow suit. That will finally revive the market.”

With growth sputtering and inflation at a low ebb, Philip Lowe, the governor of the Reserve Bank of Australia (RBA) last week gave the strongest signal yet that rates were about to move lower soon. And an overwhelming majority of economists are now predicting a cut in the cash rate to 1.25% from a record-low of 1.5% at the RBA’s June 4 policy meeting.

UNDER THE HAMMER

Auction activity – a closely-watched measure of demand in Australia – over the weekend provided the first major test for the market following the policy changes.

There were 1,933 capital city auctions on Saturday, double the amount from the previous week, and preliminary data showed a modest pick-up in demand. Clearance rates nudged above 60% for the two biggest cities of Sydney and Melbourne, compared to 50%-57% over the past year.

The promise of lower rates and easy credit led economists to predict a less steeper drop in home prices. Citi now sees a peak-to-trough fall of 7.5% by June 2019 from 10% previously. AMP’s Shane Oliver predicts a 12% top-to-bottom decline, from an earlier forecast of 15%.

Yet, few expect the boom days to return in a hurry.

“We see broadly flat house prices for 2020,” Oliver said.

“Given still high house prices and poor affordability, still very high debt levels, tighter lending standards and rising unemployment a quick return to boom time conditions is most unlikely.”

(Reporting by Swati Pandey; Editing by Shri Navaratnam)

Source: OANN

An earth mover prepares the foundation of new apartment block development in the waterfront suburb of Rushcutters Bay
An earth mover prepares the foundation of new apartment block development in the waterfront suburb of Rushcutters Bay, Australia, December 13, 2016. REUTERS/Jason Reed

May 26, 2019

By Swati Pandey

SYDNEY (Reuters) – Australia’s crumbling housing market looks set to stabilize over coming months as hopes of interest rate cuts and loosening of mortgage rules have boosted buyer inquiries, property and mortgage brokers say.

Home prices across Australia have fallen rapidly since late-2017, heightening worries among policymakers that a prolonged decline would deal a severe blow to the country’s already slowing economy.

While industry watchers say a return to boom times is unlikely anytime soon, they point to signs suggesting a bottoming-out for the sector is imminent.

Economists, including those at AMP and Citibank, last week re-jigged their forecasts to pencil in a less steeper decline in home prices than previously predicted. Several property and mortgage brokers who spoke to Reuters on Friday also said they have seen a noticeable jump in customer inquiries, including from those buying a home for investment.

“The sun is shining all over again now,” said mortgage broker Tony Bice at Sydney-based Finance Made Easy.

Bice cited the unexpected re-election of the country’s pro-business coalition government a little over a week ago and predictions of an Australia rate cut as soon as next month for the improvement in sentiment.

The Australian Prudential Regulation Authority’s (APRA) proposal to ease stress test on mortgages was the “most interesting” policy change, Bice said. Analysts expect the regulator’s move would boost customers’ borrowing capacity.

“My inquiries since the last week has risen dramatically. I have written 11 loans in the last 4 days. In the past, you’d be lucky to write 11 loans in two weeks.” Bice told Reuters.

“A lot of my clients are holding off until June to see what the Reserve Bank does. If they drop the cash rate, I expect banks to follow suit. That will finally revive the market.”

With growth sputtering and inflation at a low ebb, Philip Lowe, the governor of the Reserve Bank of Australia (RBA) last week gave the strongest signal yet that rates were about to move lower soon. And an overwhelming majority of economists are now predicting a cut in the cash rate to 1.25% from a record-low of 1.5% at the RBA’s June 4 policy meeting.

UNDER THE HAMMER

Auction activity – a closely-watched measure of demand in Australia – over the weekend provided the first major test for the market following the policy changes.

There were 1,933 capital city auctions on Saturday, double the amount from the previous week, and preliminary data showed a modest pick-up in demand. Clearance rates nudged above 60% for the two biggest cities of Sydney and Melbourne, compared to 50%-57% over the past year.

The promise of lower rates and easy credit led economists to predict a less steeper drop in home prices. Citi now sees a peak-to-trough fall of 7.5% by June 2019 from 10% previously. AMP’s Shane Oliver predicts a 12% top-to-bottom decline, from an earlier forecast of 15%.

Yet, few expect the boom days to return in a hurry.

“We see broadly flat house prices for 2020,” Oliver said.

“Given still high house prices and poor affordability, still very high debt levels, tighter lending standards and rising unemployment a quick return to boom time conditions is most unlikely.”

(Reporting by Swati Pandey; Editing by Shri Navaratnam)

Source: OANN

FILE PHOTO: Voters queue to cast their ballots in Malawi's presidential and legislative elections, in Lilongwe
FILE PHOTO: Voters queue to cast their ballots in Malawi’s presidential and legislative elections, in Lilongwe, Malawi, May 21, 2019. Picture taken May 21, 2019. REUTERS/Eldson Chagara

May 25, 2019

By Frank Phiri and Mabvuto Banda

BLANTYRE/LILONGWE, Malawi (Reuters) – Final results of Malawi’s presidential elections will be delayed, the electoral commission (MEC) said on Saturday after the high court ordered a review of the polls following opposition allegations of tampering.

Voters cast ballots for a president, parliament and ward councillors on May 21, with President Peter Mutharika’s ruling Democratic Progressive Party (DPP) facing stiff competition from the Malawi Congress Party (MCP), which filed the complaints alleging intimidation and tampering by the DPP.

The Malawian High Court ordered the MEC not to release results of the presidential vote until a judicial review of the complaints had been heard and results from 10 districts were verified.

Malawian law says complaints must be resolved within the maximum eight days between polling and the announcement of results. But chairwoman of the MEC Justice Jane Ansah said the results would be delayed until matters cited by the court were resolved.

“Presidential results have been withheld until we resolve the issue of the court injunction which we have received. We are dealing with all complaints,” Ansah told a press briefing.

The MEC has confirmed receiving 147 cases of irregularities, most to do with the use of results sheets which had sections blotted out and altered with correction fluid.

Protests have broken out in Malawi’s administrative capital Lilongwe, an opposition stronghold, prompting police to deploy armored trucks to the area where people were tearing down ruling DDP posters and hurling rocks at government buildings.

President Mutharika, 78, came to power in 2014 and is credited with improving infrastructure and lowering inflation, but has recently faced accusations of corruption and of favoring rural regions where his support is strongest.

(Reporting by Frank Phiri in Blantyre and Mabvuto Banda in Lilongwe; Writing by Mfuneko Toyana; Editing by David Holmes)

Source: OANN

FILE PHOTO: U.S. President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing
FILE PHOTO: U.S. President Donald Trump and China’s President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj/File Photo

May 24, 2019

By William Schomberg

LONDON (Reuters) – It was a stark warning about the risks ahead for the global economy, even by the forthright standards of the boss of the Organisation for Economic Co-operation and Development.

“The world economy is in a dangerous place,” Angel Gurria said as the OECD announced its latest, lower forecasts for growth on May 21.

The source of his worry: the mounting trade tensions between the United States and China, which could hit the rest of the world much harder than they have to date.

“Let’s avoid complacency at all costs,” Gurria said. “Clearly the biggest threat is through the escalation of trade restriction measures, and this is happening as we speak. This clear and present danger could easily have knock-on effects.”

With much of the world economy still recovering from the after-effects of the global financial crisis a decade ago, U.S. President Donald Trump caused alarm when he raised tariffs on $200 billion worth of goods from China on May 10, prompting Beijing to say it would hit back with its own higher duties.

Trade tensions are the main reason that growth in the global economy will weaken to 3.2 percent this year, the slowest pace in three years and down from rates of about 5 percent before the financial crisis a decade ago, the OECD said.

MORE TARIFFS?

The world economy is expected to pick up slowly next year, but only if Washington and China drop their latest tariff moves.

The impact could be a lot more severe if Trump follows through on his latest threat to hit a further $300 billion of Chinese imports with tariffs and China retaliates again.

That kind of tariff escalation, plus the associated rise in uncertainty about a broadening of the trade war, could lop about 0.7 percent off the world economy by 2021-2022, the OECD said.

That would be equivalent to about $600 billion, or the loss of the economy of Argentina.

But the knock-on effects might not stop there.

A full-blown trade war, combined with an ensuing debt crisis in China and a shift away from exports to drive its economy, could cause a 2 percent hit to China’s economy, in turn knocking global growth further, the OECD said.

To be sure, that kind of worst-case scenario may well be averted, given the stakes for the United States and China.

Trump and Chinese President Xi Jinping are due to meet at a Group of 20 leaders summit in Japan on June 28-29.

Other G20 nations will be urging them to step back from the fight, chief among them Germany and Japan, two export power-houses which have much to lose from a long trade war.

For now, the effect of the trade tensions is being felt mostly among manufacturers.

By contrast, consumers, buoyed by low unemployment and weak inflation in many of the world’s rich economies, have shown little sign of alarm at the row between Washington and Beijing.

But over the longer term, a protracted trade war is likely to drag down the consumer economy too.

Global trade should normally grow at double the pace of the world economy but is expected to lag it in 2019, boding ill for investment by companies, the OECD said.

That investment would normally drive productivity growth, which is key for long-term prosperity and is urgently needed. Living standards for many workers in rich countries remain lower than before the financial crisis of 2008-09.

The frustration with lower living standards is widely seen as one of the main factors behind the rise of populist politics, including Trump’s presidential election victory in 2016.

“To put it bluntly, this cannot be the new normal,” said Laurence Boone, the OECD’s chief economist. “We cannot accept an economy that doesn’t raise people’s living standards.”

(Writing by William Schomberg; Editing by Gareth Jones)

Source: OANN

FILE PHOTO: U.S. President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing
FILE PHOTO: U.S. President Donald Trump and China’s President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, November 9, 2017. REUTERS/Damir Sagolj/File Photo

May 24, 2019

By William Schomberg

LONDON (Reuters) – It was a stark warning about the risks ahead for the global economy, even by the forthright standards of the boss of the Organisation for Economic Co-operation and Development.

“The world economy is in a dangerous place,” Angel Gurria said as the OECD announced its latest, lower forecasts for growth on May 21.

The source of his worry: the mounting trade tensions between the United States and China, which could hit the rest of the world much harder than they have to date.

“Let’s avoid complacency at all costs,” Gurria said. “Clearly the biggest threat is through the escalation of trade restriction measures, and this is happening as we speak. This clear and present danger could easily have knock-on effects.”

With much of the world economy still recovering from the after-effects of the global financial crisis a decade ago, U.S. President Donald Trump caused alarm when he raised tariffs on $200 billion worth of goods from China on May 10, prompting Beijing to say it would hit back with its own higher duties.

Trade tensions are the main reason that growth in the global economy will weaken to 3.2 percent this year, the slowest pace in three years and down from rates of about 5 percent before the financial crisis a decade ago, the OECD said.

MORE TARIFFS?

The world economy is expected to pick up slowly next year, but only if Washington and China drop their latest tariff moves.

The impact could be a lot more severe if Trump follows through on his latest threat to hit a further $300 billion of Chinese imports with tariffs and China retaliates again.

That kind of tariff escalation, plus the associated rise in uncertainty about a broadening of the trade war, could lop about 0.7 percent off the world economy by 2021-2022, the OECD said.

That would be equivalent to about $600 billion, or the loss of the economy of Argentina.

But the knock-on effects might not stop there.

A full-blown trade war, combined with an ensuing debt crisis in China and a shift away from exports to drive its economy, could cause a 2 percent hit to China’s economy, in turn knocking global growth further, the OECD said.

To be sure, that kind of worst-case scenario may well be averted, given the stakes for the United States and China.

Trump and Chinese President Xi Jinping are due to meet at a Group of 20 leaders summit in Japan on June 28-29.

Other G20 nations will be urging them to step back from the fight, chief among them Germany and Japan, two export power-houses which have much to lose from a long trade war.

For now, the effect of the trade tensions is being felt mostly among manufacturers.

By contrast, consumers, buoyed by low unemployment and weak inflation in many of the world’s rich economies, have shown little sign of alarm at the row between Washington and Beijing.

But over the longer term, a protracted trade war is likely to drag down the consumer economy too.

Global trade should normally grow at double the pace of the world economy but is expected to lag it in 2019, boding ill for investment by companies, the OECD said.

That investment would normally drive productivity growth, which is key for long-term prosperity and is urgently needed. Living standards for many workers in rich countries remain lower than before the financial crisis of 2008-09.

The frustration with lower living standards is widely seen as one of the main factors behind the rise of populist politics, including Trump’s presidential election victory in 2016.

“To put it bluntly, this cannot be the new normal,” said Laurence Boone, the OECD’s chief economist. “We cannot accept an economy that doesn’t raise people’s living standards.”

(Writing by William Schomberg; Editing by Gareth Jones)

Source: OANN

FILE PHOTO: Japan's Health, Labour and Welfare Minister Katsunobu Kato speaks at a news conference in Tokyo
FILE PHOTO: Japan’s Health, Labour and Welfare Minister Katsunobu Kato speaks at a news conference in Tokyo, Japan August 3, 2017. REUTERS/Kim Kyung-Hoon

May 24, 2019

By Leika Kihara and Yoshifumi Takemoto

TOKYO (Reuters) – The fallout from the U.S.-China trade war on Japan’s economy will be a key factor in deciding whether to proceed with a scheduled sales tax hike this year, a senior Japanese ruling party official said on Friday.

Prime Minister Shinzo Abe has repeatedly said he will go ahead with a twice-delayed increase in the sales tax in October unless the economy is hit by a shock on the scale of the collapse of Lehman Brothers in 2008.

Katsunobu Kato, head of the Liberal Democratic Party’s general council and a close aide of Abe, said such a crisis was hard to predict, and global growth was likely to rebound later this year.

“If the economy remains in a state it is now, the government will proceed with the tax hike as scheduled,” he told Reuters.

But Kato said the government must scrutinize developments in U.S.-China trade talks and their impact on Japan’s economy, warning that it was “unclear” whether the two countries could narrow differences at a summit scheduled to be held on the sidelines of a Group of 20 leaders’ meeting next month.

“The biggest factor to look out for is the U.S.-China trade friction,” Kato said. “Global economic developments change all the time, so we need to watch out for them.”

A recent mixed batch of economic data has kept alive speculation that Abe could put off the increase in the tax rate to 10 percent from 8 percent, despite repeated assurances by senior government officials.

If the higher levy hurts the economy too much, the government can take steps to prop up growth, Kato said, while adding that in terms of policy tools “unfortunately Japan doesn’t have that many options left.”

The Bank of Japan could be called upon to help revive the economy depending on how severe the shock is, though it was up to the central bank to decide what steps it takes, he added.

“Any policy step would come at a cost, so it will be a decision the central bank makes” balancing the merits and demerits, Kato said.

Kato also said there was no change to the government’s endorsement of the BOJ’s efforts to achieve its elusive 2 percent inflation target.

“We’re not in a stage where the government needs to ask the BOJ to drop its 2 percent inflation target,” Kato said.

Years of heavy money printing have failed to drive up inflation to the BOJ’s target. Prolonged easing, instead, has drawn criticism from financial institutions for narrowing margins, raising calls from some lawmakers to drop the target or make it a less rigid one with room for some allowances.

(Reporting by Leika Kihara; Editing by Simon Cameron-Moore)

Source: OANN

FILE PHOTO: A worker cycles past containers outside a logistics center near Tianjin Port
FILE PHOTO: A worker cycles past containers outside a logistics center near Tianjin Port, in northern China, May 16, 2019. REUTERS/Jason Lee/File Photo

May 23, 2019

(Reuters) – The recent ratcheting up of U.S.-China trade tensions is creating uncertainties for businesses and could threaten economic growth, four Federal Reserve policymakers said on Thursday.

The remarks suggest the outcome of the 10-month trade war between the world’s two largest economies will be an important factor as Fed policymakers weigh how long to stay “patient” on interest rates.

“I feel like the data is good, but the mood is teetering, so if we get a relaxation or a reduction in the uncertainty…then I expect the economy’s momentum to be an upside risk to growth,” San Francisco Federal Reserve President Mary Daly said at a Dallas Fed conference. “If the uncertainties persist…then I think that’s a downside to the economy, because the uncertainty has real effects, but it also has effects on confidence, and that confidence feeds back into investment.”

Richmond Fed President Thomas Barkin and Atlanta Fed President Raphael Bostic, who spoke on the same panel, also said that uncertainties around trade could hurt growth, while their resolution could boost it.

“I’m watching very carefully how these trade tensions unfold because I have a concern.. whether that could cause some deceleration in the rate of growth,” Dallas Fed President Robert Kaplan told reporters after the panel. “It’s too soon to say.”

The comments came as researchers at the New York Fed published research showing the newest round of U.S. tariffs on Chinese imports will cost the typical American household $831 annually.

The Trump administration this month increased existing tariffs on $200 billion in Chinese goods to 25% from 10%, prompting Beijing to retaliate with its own levies on U.S. imports, as talks to end a 10-month trade war between the world’s two largest economies stalled.

“Our rate setting for the moment — key words being ‘for the moment’ — is in the right area,” Kaplan said. “I think the new development over the last month has been increased trade tensions and more business uncertainty, and it’s going to take a little while to sort out how that might unfold, or how long that might last.”

The policymakers made the comments at a Dallas Fed conference on technology, where academics, educators, and policymakers gathered to discuss the effect of technological advances like artificial intelligence on inflation, labor markets and the economy.

Research presented suggested that the adoption of new technologies may be pushing down on inflation and changing the nature of work in a way that could exacerbate what are already big income inequalities.

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

Source: OANN

San Francisco Federal Reserve President Mary Daly poses for a photo after a speech at the Commonwealth Club in San Franciso
San Francisco Federal Reserve President Mary Daly poses for a photo after a speech at the Commonwealth Club in San Franciso, California, U.S., March 26, 2019. REUTERS/Ann Saphir

May 23, 2019

(Reuters) – A series of U.S. tariff hikes on Chinese imports could help the Federal Reserve get inflation closer to its 2% target, San Francisco Federal Reserve President Mary Daly said on Thursday.

“It will affect it in the way we hope which is to move it back up to 2% … but not above,” Daly said in an interview with Fox Business News.

(Reporting by Jason Lange in Washington; Editing by Chizu Nomiyama)

Source: OANN

FILE PHOTO: Sign of the European central Bank (ECB) is seen outside the ECB headquarters in Frankfurt
FILE PHOTO: Sign of the European central Bank (ECB) is seen outside the ECB headquarters in Frankfurt, Germany, March 7, 2019. REUTERS/Kai Pfaffenbach

May 23, 2019

By Dhara Ranasinghe and Ritvik Carvalho

LONDON (Reuters) – With euro zone growth faltering again, markets are debating what else the European Central Bank can do to shore up the economy.

After pushing borrowing costs to record lows and taking 2.6 trillion euros ($2.9 trillion) worth of bonds out of the market to revive inflation, its toolkit is limited.

But as outlined below, options do exist.

1/CHANGE GUIDANCE, OFFER TLTROs

Changing guidance on its plans for interest rates is widely seen as an easy first step.

In March, the ECB pushed out the timing of its first post-crisis rate hike to 2020 at the earliest.

This is expected to be delayed further, but doing so could have a limited impact as markets no longer expect a rate hike over the next two years. In fact, rate cut bets have been building.

So, a change in guidance would likely be combined with a very generous package of cheap multi-year loans – or targeted longer-term refinancing operations (TLTRO) – aimed at banks.

The ECB is set to launch a fresh TLTRO in September, but as details are not yet finalised it has time to assess whether more generous terms are needed.

(For a graphic on ‘Will the ECB’s next move be a rate cut?’ click https://tmsnrt.rs/2ElFVza)

2/ CUT RATES, TIER RATES

The ECB is studying whether to grant relief to banks from some of the burden of its -0.4% deposit rate, worried that weak bank profitability could impair transmission of monetary policy.

For markets, tiered rates are only likely as part of a bigger easing that involves rate cuts.

Economists say a cut would require significantly weaker economic conditions, while one source told Reuters this was nowhere near to being discussed by the ECB.

But don’t rule it out: New Zealand and Iceland cut rates in May, Australia may follow in June and markets anticipate a U.S. rate cut this year.

(For an interactive version of this chart: https://tmsnrt.rs/2EdOcoU)

3/BRING BACK QE!

The ECB says it is will use all tools available to boost growth and inflation, including resuming the asset-purchase scheme it ended just five months ago.

Capital Economics expects QE to return next year and ABN AMRO believes any new stimulus is likely to take this form.

But first, the ECB would need to raise the limit on how much sovereign debt it can hold from a single issuer, given it was already approaching the current 33% limit when QE ended.

That ceiling was introduced to ensure the ECB did not have a deciding vote in case of a debt restructuring, and changing it could expose the ECB to legal challenges.

(For an interactive version of the chart below: https://tmsnrt.rs/2EgAulf)

“Although raising the limit would likely be an uncomfortable situation for the ECB, it would be willing to do this in our view given the lack of other alternatives,” said ABN AMRO’s head of financial market research Nick Kounis.

4/BUY STOCKS, BONDS, SOURED LOANS

With government bonds getting scarce, the ECB added corporate debt to QE asset purchases in 2016. A new QE round could include shares.

Switzerland’s central bank buys stocks to diversify its currency reserves and the Bank of Japan buys equity exchange traded funds (ETFs) as part of its QE.

ECB Vice President Luis de Guindos said in April the ECB had not discussed buying stocks, and many question the effectiveness of equity purchases.

“It’s doable and sensible but it would be complicated,” said Marchel Alexandrovich, European financial economist at Jefferies. The European stock market is relatively small and buying stocks could leave the ECB open to criticism that it is picking companies that don’t apply best business practices, he said.

Buying bank bonds would be a game changer, said TS Lombard senior economist Shweta Singh. “This would release a lot of assets for the ECB to buy but it is next to impossible, as it would complicate the ECB’s role as bank supervisor,” she said.

Buying banks’ non-performing loans would also have a more powerful impact than buying equities but conflicts with the ECB’s supervisory role.

(For a graphic on ‘Size of major world equity markets’ click https://tmsnrt.rs/2WlhJHn)

5/YIELD CURVE CONTROL

One way to add more economic stimulus could be to target explicit levels for long-term interest rates.

The BOJ has targeted long-term yields around zero since 2016, and the idea is gaining traction. Federal Reserve official Lael Brainard has said she wanted to explore whether the Fed, in a future downturn, should consider this step.

It would be more complicated for the ECB, said Mohammed Kazmi, portfolio manager for UBP in Geneva. “The natural answer is to target Germany because the other countries’ bonds are priced against Germany,” he said.

But German bonds are in short supply. The ECB could change its capital key rule, where it buys bonds relative to a member state’s contribution to the ECB working capital. That would allow it to target another bond market though this in turn would leave it open to charges of financing spending by weaker states.

(For a graphic on ‘Yield curve control: a leaf out of the BoJ’s book?’ click https://tmsnrt.rs/2Wljl3V)

(Reporting by Dhara Ranasinghe; Graphics by Ritvik Carvalho; Additional reporting by Balazs Koranyi in Frankfurt; editing by John Stonestreet)

Source: OANN

BOJ new Deputy Governor Amamiya attends his inaugural news conference at the BOJ headquarters in Tokyo
FILE PHOTO: Bank of Japan (BOJ) new Deputy Governor Masayoshi Amamiya attends his inaugural news conference at the BOJ headquarters in Tokyo, Japan, March 20, 2018. REUTERS/Toru Hanai

May 23, 2019

TOKYO (Reuters) – The Bank of Japan would adjust interest rates by paying heed to its impact on domestic and overseas financial markets when it comes to exiting from monetary stimulus, Deputy BOJ Governor Masayoshi Amamiya said on Thursday.

Amamiya told a parliament session that the central bank will continue its current powerful monetary easing patiently as it will take time to accelerate inflation to its 2% target.

(Reporting by Tetsushi Kajimoto; Editing by Simon Cameron-Moore)

Source: OANN


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