Reuters (July 3)
“Japanese business sentiment improved in the second quarter as raw material costs peaked and removal of pandemic curbs lifted consumption… a sign the economy was on course for a steady recovery.” The quarterly survey or “tankan” by the central bank offers “policymakers hope that conditions for phasing out their massive monetary stimulus may be gradually falling into place.”
Tags: Business sentiment, Consumption, Costs, Economy, Japan, Monetary stimulus, Pandemic curbs, Peaked, Policymakers, Q2, Raw material, Steady recovery
Bloomberg (August 14)
“The last time Japan strung together this many quarters of growth was back in mid-2006…. The yen has fallen, corporate profits have soared and the economy is running above its potential growth rate. Yet inflation remains stubbornly low, despite massive monetary stimulus from the central bank. Economists are watching intently for signs that the tightest labor market in decades is beginning to bring wage gains.”
Tags: Central bank, Economists, Economy, Inflation, Japan. Growth, Labor market, Monetary stimulus, Profits, Wage gains, Yen
Bloomberg (July 18)
“The growing focus on the risks associated with the BOJ’s monetary stimulus program—which includes enormous asset purchases, particularly of Japanese government bonds, as well as negative interest rates and yield curve control—comes as its inflation target remains elusive. With no end to its program in sight, the BOJ is under increasing pressure to mitigate risks and explain its thinking about an eventual exit.” Bloomberg calculated that the BOJ already owns over 70 percent of all shares in Japan-listed ETFs and could soon own most of the free float in companies like Fast Retailing.0000000000000
Tags: Asset purchases, BOJ, ETFs, Fast Retailing, Free float, Inflation, Japan, JGBs, Monetary stimulus, Negative interest rates, Risks, Yield curve control
Bloomberg (August 10)
The Bank of Japan has refrained from additional monetary stimulus; an apparent acknowledgement that “pumping more money into the economy won’t end Japan’s deflation. Falling prices are as much about the aging population as anything else, and only structural change can arrest the trend.” Fortunately, the economy might just be driven by “a new breed of Japanese companies going overseas as the domestic market shrinks.”
Tags: Aging population, BOJ, Deflation, Economy, Japan, Market, Monetary stimulus, Overseas, Prices, Structural change
Wall Street Journal (June 6)
Mario Draghi is again being pressed “to rescue Europe’s politicians from their own economic failures. If only the politicians would give him pro-growth economic reform in return for all of his monetary exertions.” Under Draghi’s leadership, the EU Central Bank taken additional measures to stimulate the economy, including charging banks interest on funds deposited with the central bank, in the hope that bankers will be more inclined to lend their funds to businesses and individuals.
Tags: Banks, Draghi, Economy, EU Central Bank, Europe, Failures, Growth, Interest, Lending, Monetary stimulus, Politicians, Reform
