Heard on the Street: The Bank of Japan’s quandary is that it has gone practically as far as it can in cutting interest rates and purchasing government bonds
By Mike Bird July 29, 2019 4:37 am ET Economic growth and inflation expectations look shaky. What’s a central banker to do after exhausting every policy in the textbook?
That poses a problem, not just because Japan is faced with weak world trade and a slowing Chinese economy, but because other central banks cutting rates is likely to put upward pressure on the yen, reducing the value of foreign earnings for Japanese companies and potentially hitting the country’s exports.
Restarting the mammoth government bond purchases of 2012-2016 would have a diminished impact this time around, with yields already pinned at around 0% by the BOJ’s yield-curve control policy. And the central bank already owns nearly half of the total amount outstanding, and its policies have all but killed off activity elsewhere in the market.
But despite the fact that the country’s economic challenges are so entrenched, the institutional conservatism of the country’s economic policy makers makes such a shift unlikely.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB's Nowotny predicts historically low interest rates in long termEuropean Central Bank policymaker Ewald Nowotny said on Saturday he expects inte...
Read more »
The $50 Dinner Party for SixOur mostly make-ahead game plan for a summery dinner party that won't break the bank.
Read more »
Lower provisions help India's ICICI bank swing to first quarter profitICICI Bank Ltd , India's second-largest private lender, reported a quarterl...
Read more »
'Pink Lady Bandit' on FBI's radar following three bank robberiesThe Pink Ladies in 'Grease' were known for their iconic matching jackets, but now authorities are on the search for a different kind of namesake. The FBI is looking for a woman they've dubbed the 'Pink Lady Bandit' because she allegedly carried a 'distinctive pink handbag
Read more »
'Pink Lady Bandit' on FBI's radar following three bank robberiesThe FBI is looking for a woman they've dubbed the Pink Lady Bandit because she carried a 'distinctive pink handbag' to two of the three recent bank robberies.
Read more »
FBI offers $10,000 reward for 'Pink Lady Bandit' after string of bank robberiesThe FBI is offering a $10,000 reward in its search for a woman dubbed the 'Pink Lady Bandit' who is suspected in at least 4 bank robberies over the span of a week.
Read more »