CNN (May 1)
“Another day, another piece of evidence that President Donald Trump’s escalating trade war with friends and foes is hurting the global economy. Today: Japan’s central bank cut its economic growth forecast for the country in half.” The Bank of Japan “lowered its expectations for 2025 gross domestic product growth to an anemic 0.5%, down from the previous projection of +1.1%, made in January.”
Tags: 0.5%, 2025, Anemic, BOJ, Economic growth, Escalating, Evidence, Expectations, Foes, Forecast, Friends, GDP, Global economy, Hurting, Japan, Trade war, Trump
Forbes (January 3)
“By the end of 2024, it was clear average national wages weren’t keeping pace with the rate of inflation…. The BOJ decided on December 19 that Japan isn’t ready to normalize interest rates,” with the official rate remaining 0.25%. This presents “quite a paradox for global investors who’d rushed into Nikkei 225 Stock Average stocks. If the BOJ thinks Japan still requires economic training wheels after all this time, why should they bet on Japan Inc.?”
Tags: 2024, BOJ, Global investors, Inflation rate, Interest rates, Japan Inc., National wages, Nikkei 225, Official rate, Paradox, Training wheels
Financial Times (August 7)
The equity sell-off in the U.S. “could have triggered the unwinding of the carry trade, not the other way around. And the timing suggests this is what happened. The equity sell-off did not start in earnest until Friday of last week — two days after the BoJ raised rates, or after currency traders had time to digest the news.”
Tags: BOJ, Carry trade, Currency traders, Equity, Rates, Sell-off, Triggered, U.S., Unwinding
Seeking Alpha (August 6)
The “market meltdown” on Monday “isn’t getting any less volatile, with things now moving in the opposite direction. Japan’s Nikkei ended the session up 10% overnight, marking its best session since 2008, following a plunge of 13% on Monday. Much of the volatility is said to have emanated in Japan, where a carry trade based on the yen went sour as the BOJ raised rates during the same week the Fed signaled its intention to cut.”
Tags: 2008, BOJ, Carry trade, Cut, Fed, Japan, Market, Meltdown, Nikkei, Plunge of 13%, Up 10%, Volatile, Yen
Markets Insider (August 3)
“Japan’s stocks took a hit on Friday, fueled by economic concerns in the US and the Bank of Japan’s interest-rate hike earlier this week.” Closing down 5.8%, the Nikkei marked “its largest daily decline since March 2020 after hitting record highs earlier this month.” The Nikkei was not alone. Amid signs of a cooling economy, U.S. stock indices “tanked across the board over the past two days due to a combination of discouraging economic data points, including rising unemployment and slowing manufacturing and construction.”
Tags: 2020, 5.8%, BOJ, Construction, Cooling, Decline, Discouraging, Economic concerns, Friday, Interest-rate hike, Japan, Manufacturing, Nikkei, Record highs, Stocks, U.S., Unemployment
Forbes (July 29)
“As central bank decisions go, the one Bank of Japan Governor Kazuo Ueda will make this week may be the toughest in modern history.” He is faced with deciding “whether to break with 25 years of zero interest rates and 23 years of quantitative easing by putting a notable rate hike on the scoreboard…. Making matters worse, smart economists can make nuanced abstractions compelling arguments for taking any of the three doors sitting before him.”
Tags: 25 years, BOJ, Central bank, Decisions, Economists, Quantitative easing, Rate hike, Toughest, Ueda, Zero interest
Bloomberg (May 24)
“Overseas issuers sold yen bonds at the fastest pace in five years so far this month, chasing cheap funds before an expected interest rate hike by the Bank of Japan pushes up borrowing costs.”
Tags: BOJ, Borrowing costs, Cheap funds, Expected, Fastest pace, Hike, Interest rate, Overseas issuers, Yen bonds
Institutional Investor (April 1)
“In March, the Bank of Japan made the seismic decision to raise interest rates for the first time in 17 years. The long-awaited shift to positive rates has excited some of the country’s leading chief executives.”
Tags: 17 years, BOJ, Chief executives, Decision, Excited, Interest rates, Japan, Leading, Long-awaited, March, Positive rates, Raise, Seismic, Shift
Business Insider (March 31)
Japan’s “stock market is ripping; the Nikkei recently exceeded the all-time highs it set 34 years ago. Analysts at Goldman Sachs are telling clients there’s still more upside to be had as corporate-governance reforms and a new era of sustainable inflation take hold. The Bank of Japan this month hiked interest rates above zero for the first time since 2007, a sign of confidence in the country’s recovery.”
Tags: Analysts, BOJ, Clients, Confidence, Corporate governance, Goldman Sachs, Highs, Inflation, Interest rates, Japan, Nikkei, Reforms, Ripping, Stock market, Upside
Forbes (March 15)
“As the Bank of Japan mulls its biggest policy pivot in roughly 25 years, no major economy may benefit more than China,” helping to counter the headwinds zooming China’s way.” Hoping to supplant the dollar as the global currency, China is hesitant to devalue its own currency. Yet, “for China, falling prices will just further undermine business and household confidence. It’s here where a rising yen could counter the headwinds zooming China’s way. And make China the real winner as the BOJ calls it quits on QE next week.”
Tags: BOJ, Business, China, Confidence, Devalue, Dollar, Falling, Global currency, Headwinds, Household, Major economy, Policy pivot, Prices, Rising yen, Undermine
