net_left adver left

BOJ Holds Firm, Putting Growth Fears Ahead of Weak Yen

Thursday, July 21, 2022
BOJ Holds Firm, Putting Growth Fears Ahead of Weak Yen © Reuters. BOJ Holds Firm, Putting Growth Fears Ahead of Weak Yen

(Bloomberg) -- The Bank of Japan left its rock-bottom interest rates unchanged Thursday as it put concern over the economy ahead of any potential implications for the yen for now, further cementing its outlier stance compared with inflation-fighting central banks overseas.

Supporting its view that the sputtering economy needs continued support even as the impact of the pandemic softens, the BOJ lowered its economic growth forecast for this year.

The downgrade follows lockdowns in China and a jump in Covid cases at home since the last quarterly projections. The global outlook has also darkened as inflation abroad fuels recession fears exacerbated by the continued war in Ukraine.

The BOJ’s concern over the growth trajectory is linked to its view that a solid recovery is necessary to help make inflation sustainable. While it raised its price forecasts for the current fiscal year to show inflation averaging 2.3% for the year ending in March, it sees that momentum slowing in the 12 months that follow.

With the stand-pat decision, Governor Haruhiko Kuroda is continuing to hunker down on stimulus despite a wave of interest-rate hikes by his peers as they try to rein in much stronger price growth. The European Central Bank is poised to raise borrowing costs later Thursday to leave the BOJ as the sole remaining dove among major central banks in developed economies.

The continued holding pattern and its bias toward further easing shows the BOJ is still prepared to risk a further weakening of the yen and renewed attacks on its yield cap as it pursues its goal of steady growth with sustainable inflation.

Read More: Kuroda Stares Down Market Bets for BOJ Pivot During His Term

The central bank has gained some breathing space to hold firm on stimulus after concerns over the global economy eased some of the pressure on the yen and 10-year yields. Just last month the BOJ was forced to buy a record amount of bonds to defend its ceiling on yields.

Japan’s currency weakened a touch to 138.41 against the dollar after whiplashing immediately after the BOJ decision. It set a fresh 24-year low of 139.39 last week.

This was the first policy meeting since the shocking murder of former Prime Minister Shinzo Abe who handpicked Kuroda to lead the bank and enabled him to become the longest serving BOJ governor.

Some economists including Hiroaki Muto at Sumitomo Life Insurance say the death may have firmed up Kuroda’s determination to stick with easing as he looks to continue the legacy of Abenomics in which he has been a key player.

Prime Minister Fumio Kishida’s strong victory in a key national election last week has also removed for the time being a potential source of pressure for change. The result showed scant public support for alternative policy approaches as the government continues to offer subsidies that alleviate household pain caused by the higher cost of living.

That has left Kuroda with scope to continue with a short-term interest rate of -0.1% and a 0.25% cap on the bank’s 10-year yield target even though this combination is contributing to yen weakness that adds to inflationary pressure.

The yen is not far from the 140 level against the dollar that would likely reignite speculation of possible currency intervention by the government, even if the likelihood of such action may still be limited.

The BOJ now sees the economy growing 2.4% this fiscal year from its earlier 2.9% view, indicating a further slowing of the recovery from the pandemic. China’s lockdowns dealt a heavy blow to manufacturers already struggling with prolonged supply chain bottlenecks, while the resurgence of virus infections and higher prices are likely to limit the rebound in consumer spending.

The central bank continues to be extremely wary of moving too quickly to raise rates and hitting the economy as it has done in the past.

(Adds more details from the statement)

©2022 Bloomberg L.P.

Leave your comment
HOT AUTO TRADE BOT SOFTWARE adver right
APPROVED BROKERS
net_home_top HOT AUTO TRADE BOT SOFTWARE
10-08-2022 21:17:01 (UTC+7)

EUR/USD

1.0329

+0.0118 (+1.16%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (1)

EUR/USD

1.0329

+0.0118 (+1.16%)

Summary

Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (5)

Sell (1)

GBP/USD

1.2228

+0.0148 (+1.23%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (3)

Sell (5)

USD/JPY

132.35

-2.79 (-2.06%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (6)

AUD/USD

0.7081

+0.0117 (+1.68%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

USD/CAD

1.2794

-0.0094 (-0.73%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (9)

EUR/JPY

136.71

-1.26 (-0.92%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (8)

EUR/CHF

0.9718

-0.0019 (-0.19%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

Gold Futures

1,812.80

+0.50 (+0.03%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (6)

Silver Futures

20.642

+0.160 (+0.78%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (6)

Copper Futures

3.6353

+0.0498 (+1.39%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (10)

Crude Oil WTI Futures

87.81

-2.69 (-2.97%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Brent Oil Futures

93.77

-2.54 (-2.64%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Natural Gas Futures

7.883

+0.050 (+0.64%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (1)

US Coffee C Futures

220.35

+7.60 (+3.57%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Euro Stoxx 50

3,738.15

+22.78 (+0.61%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (2)

Sell (5)

S&P 500

4,185.65

+63.18 (+1.53%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (7)

DAX

13,653.00

+118.03 (+0.87%)

Summary

Neutral

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (2)

Sell (3)

FTSE 100

7,492.14

+3.99 (+0.05%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (4)

Hang Seng

19,610.84

-392.60 (-1.96%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

US Small Cap 2000

1,944.95

+35.94 (+1.88%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (5)

IBEX 35

8,329.75

+17.85 (+0.21%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (10)

BASF SE NA O.N.

44.343

+0.348 (+0.79%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (6)

Sell (1)

Bayer AG NA

51.84

-0.32 (-0.61%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (6)

Allianz SE VNA O.N.

178.13

-0.43 (-0.24%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

Adidas AG

171.42

+2.42 (+1.43%)

Summary

Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (4)

Sell (3)

Deutsche Lufthansa AG

6.548

-0.025 (-0.38%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Siemens AG Class N

108.68

+2.16 (+2.03%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Deutsche Bank AG

8.811

+0.084 (+0.96%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (1)

 EUR/USD1.0329Buy
 GBP/USD1.2228Neutral
 USD/JPY132.35↑ Sell
 AUD/USD0.7081↑ Buy
 USD/CAD1.2794↑ Sell
 EUR/JPY136.71↑ Sell
 EUR/CHF0.9718↑ Sell
 Gold1,812.80↑ Sell
 Silver20.642Sell
 Copper3.6353↑ Sell
 Crude Oil WTI87.81↑ Sell
 Brent Oil93.77↑ Sell
 Natural Gas7.883↑ Buy
 US Coffee C220.35↑ Buy
 Euro Stoxx 503,738.15Sell
 S&P 5004,185.65Sell
 DAX13,653.00Neutral
 FTSE 1007,492.14Neutral
 Hang Seng19,610.84↑ Buy
 Small Cap 20001,944.95Neutral
 IBEX 358,329.75↑ Sell
 BASF44.343↑ Buy
 Bayer51.84↑ Sell
 Allianz178.13↑ Sell
 Adidas171.42Buy
 Lufthansa6.548↑ Sell
 Siemens AG108.68↑ Buy
 Deutsche Bank AG8.811↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,600/ 6,700
(-20/ -20) # 1,624
SJC HCM6,600/ 6,700
(-20/ -20) # 1,624
SJC Hanoi6,600/ 6,702
(-20/ -20) # 1,626
SJC Danang6,600/ 6,702
(-20/ -20) # 1,626
SJC Nhatrang6,600/ 6,702
(-20/ -20) # 1,626
SJC Cantho6,600/ 6,702
(-20/ -20) # 1,626
Cập nhật 10-08-2022 21:17:04
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,797.21+3.040.17%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V26.28026.800
RON 95-III25.60026.110
E5 RON 92-II24.62025.110
DO 0.05S23.90024.370
DO 0,001S-V25.88026.390
Dầu hỏa 2-K24.53025.020
ↂ Giá dầu thô thế giới
WTI$88.01+0.770.87%
Brent$93.91+0.630.67%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.220,0023.530,00
EUR23.251,8824.554,01
GBP27.508,9128.682,08
JPY168,20178,07
KRW15,4618,84
Cập nhật lúc 18:51:10 10/08/2022
Xem bảng tỷ giá hối đoái
adver main right