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Bloomberg (June 8)

2022/ 06/ 10 by jd in Global News

“It’s not like inflation is out of control in Japan. Far from it. Consumer prices rose 2.1% in April from a year earlier, finally reaching the BOJ’s target.” Nevertheless, “after a generation of ultra-low prices, Kuroda may not have appreciated how hard it is for Japanese to embrace something they haven’t had to deal with.” In April, fresh fish and vegetables rose by 12%, “including a nearly 100% increase in the cost of onions. Talk about eye watering.” The BOJ has worked for nearly three decades “to crank up inflation from dangerously low levels. How galling that Japan may not even want it.”

 

Reuters (April 1)

2022/ 04/ 03 by jd in Global News

In March, the Japanese yen “lost around 8% against the dollar… dropping to a six-year low below 125 on Monday.” Some believe that level “raises alarm among Japanese authorities, as a previous drop to that level triggered verbal warnings by BOJ’s Kuroda.” However, in terms of the “real, effective exchange rate—an indicator that captures the international competitiveness of a currency,” the yen is performing even worse, having “slid to less than half” of 1995’s peak.

 

Reuters (April 29)

2020/ 05/ 01 by jd in Global News

“There’s an end to everything except, apparently, central bankers’ creativity. Virus-damaged economies will need lots of help to heal, and more downturns are inevitable in the future. The monetary-policy bigwigs will keep coming up with more new ways to stimulate growth.” The Fed and BoE may “eventually overcome their aversion to negative interest rates” and/or “copy Bank of Japan chief Haruhiko Kuroda’s yield-curve control policy of targeting specific levels for 10-year government bond yields.”

 

Bloomberg (January 12)

2018/ 01/ 14 by jd in Global News

“Since Kuroda took office five years ago, bank stocks have underperformed the broader market by more than 50 percentage points,” but there are signs that  Japanese banks will soon lose their “cheapest in the world” status. Despite a 5.7% average ROE, large Japanese financial institutions trade at just 0.69 of book. If, as widely expected, the BoJ relaxes its yield curve control, these large financial institutions would receive a welcome boost.

 

Reuters (May 15)

2016/ 05/ 16 by jd in Global News

“Fears policy makers are out of ammunition has led a growing number of overseas investors to speculate the BOJ might resort to helicopter money,” but this remains unlikely. “Bank of Japan Governor Haruhiko Kuroda likes to keep markets guessing by saying one thing and doing another, but… officials and close associates say he almost certainly means it” when he rules out using helicopter money to reinvigorate the economy.

 

Bloomberg (March 25)

2016/ 03/ 26 by jd in Global News

There are lots of questions for the Bank of Japan about its negative rate strategy, which “has caused bond yields to fall below zero, money market funds to stop accepting money, and lawmakers to summon Bank of Japan Governor Haruhiko Kuroda to parliament a record number of times to explain it.”

 

Bloomberg (February 1)

2016/ 02/ 01 by jd in Global News

“The Bank of Japan governor’s major additions to stimulus in 2013 and the following year were unequivocally good for equities…. The latest salvo to spur inflation- negative interest rates on some deposits- is less straightforward.” Kuroda’s surprise move to negative rates has earned everything from praise to criticism, with some taking a wait-and-see approach.

 

Financial Times (June 4)

2015/ 06/ 05 by jd in Global News

“With inflation stuck at zero, and the BoJ’s attempts to fly looking more like Wendy’s than Peter Pan’s, Mr Kuroda has taken every opportunity to reinforce his commitment to future inflation…. In Neverland, whatever Peter Pan wanted, he got. In his determination to end Japan’s deflation, Mr Kuroda may be the same.”

 

Bloomberg (December 14)

2014/ 12/ 14 by jd in Global News

Under the leadership of Masahiko Kuroda, the Bank of Japan’s “policies have indeed been bold — bolder than anything Abe himself has been willing to attempt. But the BOJ’s policies are allowing the government to sidestep its responsibility. That must stop if Abenomics is to come off life support. On Friday, Kuroda should begin nudging Abe to do something with his popular mandate for change. Anything.”

 

The Economist (April 13, 2013)

2013/ 04/ 14 by jd in Global News

“Mr Abe must be absolutely clear that Mr Kuroda’s boldness has to be met with even greater boldness on the government’s part in freeing the economy. He should tackle head-on the corporate sector’s excessive savings, for instance, by taxing retained earnings that are not invested. He needs to do more to get more women into the workforce. He must (against all his nationalist instincts) promote immigration. He must open up protected sectors—electricity, health care, farming—to competition.”

 

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