-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI ASIA MARKETS OPEN: Tsy Curves Reverse Course Ahead Wed CPI
MNI ASIA MARKETS ANALYSIS:Waiting For Next Inflation Shoe Drop
Key Inter-Meeting Fed Speak – Dec 2024
US TREASURY AUCTION CALENDAR: Avg 3Y Sale
MNI POLICY: BOJ To Tweak Guidance If Covid Severity Downgraded
Considerations by Japan's government to reclassify Covid-19 in the same category as seasonal flu will likely prompt the Bank of Japan to remove “while closely monitoring the impact of Covid-19” from its forward guidance, MNI understands.
The BOJ is instead expected to state it is closely monitoring developments in overseas economies that are set to slow due to the rate hikes. Officials see the degree of global economic slowdown as the biggest risk factor for Japan’s economy and inflation outlook.
Prime Minister Fumio Kishida is considering a reclassification of the severity of Covid but no decision has been made. The BOJ will not tweak its guidance until an official announcement.
Should the BOJ remove Covid-19 from its forward guidance, the bank will likely keep its warning of Covid-19 abroad as a risk to the outlook as China's economy has been hit by a surge in infections. Downside risks to growth are likely to prompt the BOJ to continue to reiterate its expectation that “short- and long-term policy interest rates to remain at their present or lower levels.”
The removal of the wording may be interpreted to mean the bank has shifted its policy bias to neutral from easing, which would destabilise financial markets. The BOJ is expected to respond by pledging to keep interest rates at low levels and repeat it “will not hesitate to take additional easing measures if necessary.”
The BOJ maintained it easy policy settings after meeting earlier this week, keeping the 50bp band around its 10-year yield target. Easy policy was viewed as necessary to support Japan's economy. (See MNI BOJ WATCH: Kuroda Dismisses Market Speculation On YCC Hike).
“With regard to the risk balance, risks to economic activity are skewed to the downside for fiscal 2022 and 2023 but are generally balanced for fiscal 2024. Risks to prices are skewed to the upside,” January's Outlook Report said.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.