-
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
Commodities
Real-time insight of oil & gas markets
-
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 Chart Packs -
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 STATE OF PLAY (RPT):BOJ To Stay Easy Despite Weak Yen, Ylds
(Repeats article first published on June 15)
The Bank of Japan will keep easy conditions in place at its meeting this week even after the yen briefly crossed 135 to the dollar on Monday and after speculation of more aggressive hikes by the Federal Reserve forced the BOJ to increase planned bond purchases to defend its targeted yield range.
While the widening yield gap with U.S. rates has prompted the yen to dip around 15% against the dollar this year, fuelling cost-push inflation driven by imported energy that lifted CPI by 2.1% in April, policymakers do not expect increases in wages and prices to keep inflation sustainably at the 2% target. (See: MNI INSIGHT: Japan's Retail Price Hikes May Falter In 2023). This week, the BOJ could also cut its growth outlook even as the country emerges from pandemic curbs and reopens to tourism.
As a result, the BOJ is expected to continue to defend a 10-year yield range of -0.25% to +0.25% with a target of 0%, hold the short-term rate at -0.1% and continue annual exchange-traded fund purchases of around JPY12 trillion and J-REIT purchases around JPY180 billion.
FORWARD GUIDANCE
The BOJ board is also expected to maintain forward guidance for policy rates “to remain at their present or lower levels” while the output gap remains in negative territory and the economy continues to lag pre-pandemic levels. Exports and production have been hit by supply-chain problems with the BOJ looking to the Tankan business sentiment survey due out on July 1 for guidance.
Governor Haruhiko Kuroda on Monday said that the recent sharp yen fall above JPY135 was not good for the economy and there were rumblings last week in Japanese policy circles of potential action on the yen level, though coordinated FX intervention would rely on the Ministry of Finance to make any such decision.
Another agenda item for the BOJ is a special programme to support funding for smaller firms hit by pandemic curbs, which is set to expire at the end of September and which could come up in June for discussion ahead of a decision to extend, or not, at the July 20-21 meeting.
The BOJ board will review its medium-term economic growth and inflation rate forecasts in the quarterly Outlook Report at its July meeting.
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.