Bank of Japan Archive

  • Bank of Japan Governor Haruhiko Kuroda said he is not thinking of adopting a negative interest rate policy now, signalling that any further monetary easing will likely take the form of an expansion of its current massive asset-buying programme.

    BOJ’s Kuroda says no plan to adopt negative rates now

    Bank of Japan Governor Haruhiko Kuroda said he is not thinking of adopting a negative interest rate policy now, signalling that any further monetary easing will likely take the form of an expansion of its current massive asset-buying programme.

    Continue Reading...

  • Japan's central bank, which dominates the domestic bond market, has begun to call the shots in the equity market as well -- to the point where asset managers are looking to design investment funds with the Bank of Japan in mind.

    Japan central bank turns activist investor to revive economy

    Japan's central bank, which dominates the domestic bond market, has begun to call the shots in the equity market as well -- to the point where asset managers are looking to design investment funds with the Bank of Japan in mind.

    Continue Reading...

  • Asian shares were higher in early Asian trade on Thursday, heartened by gains on Wall Street and a recovery in crude oil prices in thin trading ahead of this week's Christmas holiday.

    Asian shares rise in early trade Thursday, oil rebounds

    Asian shares were higher in early Asian trade on Thursday, heartened by gains on Wall Street and a recovery in crude oil prices in thin trading ahead of this week's Christmas holiday.

    Continue Reading...

  • The MSCI Asia Pacific Index declined 0.4 percent to 129.24 as of 9:21 a.m. in Tokyo. Japan’s Topix index dropped 0.9 percent after the yen strengthened 1.1 percent against the dollar on Friday. The regional benchmark gauge is down 6.3 percent this year, on course for its first back-to-back annual declines since 2002, as a commodity rout deepened and investors speculated Chinese authorities will need to increase stimulus to support economic growth. The loss would be more than twice that for the Standard & Poor’s 500 Index, which has dropped 2.6 percent in 2015.

    Asian Stocks Retreat as Yen Weighs on Japan, Toshiba Tumbles

    The MSCI Asia Pacific Index declined 0.4 percent to 129.24 as of 9:21 a.m. in Tokyo. Japan’s Topix index dropped 0.9 percent after the yen strengthened 1.1 percent against the dollar on Friday. The regional benchmark gauge is down 6.3 percent this year, on course for its first back-to-back annual declines since 2002, as a commodity rout deepened and investors speculated Chinese authorities will need to increase stimulus to support economic growth. The loss would be more than twice that for the Standard & Poor’s 500 Index, which has dropped 2.6 percent in 2015.

    Continue Reading...

  • “These kinds of ETFs don’t exist now. Using capital spending as a factor in deciding what goes in an ETF is quite unusual,” said Koei Imai, who oversees $25 billion of ETFs at Nikko Asset Management Co. in Tokyo. “I think the message from the BOJ is for us to go out and make them.”

    The Bank of Japan’s $2.5 Billion Plan to Buy Non-Existent ETFs

    “These kinds of ETFs don’t exist now. Using capital spending as a factor in deciding what goes in an ETF is quite unusual,” said Koei Imai, who oversees $25 billion of ETFs at Nikko Asset Management Co. in Tokyo. “I think the message from the BOJ is for us to go out and make them.”

    Continue Reading...

  • Most dealers continue to blame oil for the set-back with declines today of around another 1% in both WTI and Brent (last seen $34.60 and $36.80). Gold recouped some of yesterdays losses gaining $15 and was last seen at $1065. As typical, people sell gold when stocks rally and buy it when they decline. This relationship will also flip in 2016.

    Market Talk December 18th, 2015

    Most dealers continue to blame oil for the set-back with declines today of around another 1% in both WTI and Brent (last seen $34.60 and $36.80). Gold recouped some of yesterdays losses gaining $15 and was last seen at $1065. As typical, people sell gold when stocks rally and buy it when they decline. This relationship will also flip in 2016.

    Continue Reading...

  • The prime value, which also seems to demarcate the inner club from the rest of the BIS members, is the firm belief that central banks should act independently of their home governments. This is an easy position for Leutwiler to hold, since the Swiss National Bank is privately owned (the only central bank that is not government owned) and completely autonomous. ("I don't think many people know the name of the president of Switzerland-even in Switzerland," Pohl joked, "but everyone in Europe has heard of Leutwiler.") Almost as independent is the Bundesbank; as its president, Pohl is not required to consult with government officials or to answer the questions of Parliament-even about such critical issues as raising interest rates. He even refuses to fly to Basel in a government plane, preferring instead to drive in his Mercedes limousine.

    Ruling The World of Money: The Money Club – Part 3

    The prime value, which also seems to demarcate the inner club from the rest of the BIS members, is the firm belief that central banks should act independently of their home governments. This is an easy position for Leutwiler to hold, since the Swiss National Bank is privately owned (the only central bank that is not government owned) and completely autonomous. ("I don't think many people know the name of the president of Switzerland-even in Switzerland," Pohl joked, "but everyone in Europe has heard of Leutwiler.") Almost as independent is the Bundesbank; as its president, Pohl is not required to consult with government officials or to answer the questions of Parliament-even about such critical issues as raising interest rates. He even refuses to fly to Basel in a government plane, preferring instead to drive in his Mercedes limousine.

    Continue Reading...

  • There is, however, another reason why the central banks regularly transfer deposits to the BIS: they want to provide it with a large enough profit to support the other services it provides. Despite its name, the BIS is far more than a bank. From the outside, it seems to be a small, technical organization. Just eighty-six of its 298 employees are ranked as professional staff. But the BIS is not a monolithic institution: artfully concealed within the shell of an international bank, like a series of Chinese boxes one inside another, are the real groups and services the central bankers need-and pay to support.

    Ruling The World of Money: The Money Club – Part 2

    There is, however, another reason why the central banks regularly transfer deposits to the BIS: they want to provide it with a large enough profit to support the other services it provides. Despite its name, the BIS is far more than a bank. From the outside, it seems to be a small, technical organization. Just eighty-six of its 298 employees are ranked as professional staff. But the BIS is not a monolithic institution: artfully concealed within the shell of an international bank, like a series of Chinese boxes one inside another, are the real groups and services the central bankers need-and pay to support.

    Continue Reading...

  • Originally, the central bankers sought complete anonymity for their activities. Their headquarters were in an abandoned six story hotel, the Grand et Savoy Hotel Universe, with an annex above the adjacent Frey's Chocolate Shop. There purposely was no sign over the door identifying the BIS, so visiting central bankers and gold dealers used Frey's, which is across the street from the railroad station, as a convenient landmark. It was in the wood-paneled rooms above the shop and the hotel that decisions were reached to devalue or defend currencies, to fix the price of gold, to regulate offshore banking, and to raise or lower short-term interest rates.

    Ruling The World of Money – Part 1

    Originally, the central bankers sought complete anonymity for their activities. Their headquarters were in an abandoned six story hotel, the Grand et Savoy Hotel Universe, with an annex above the adjacent Frey's Chocolate Shop. There purposely was no sign over the door identifying the BIS, so visiting central bankers and gold dealers used Frey's, which is across the street from the railroad station, as a convenient landmark. It was in the wood-paneled rooms above the shop and the hotel that decisions were reached to devalue or defend currencies, to fix the price of gold, to regulate offshore banking, and to raise or lower short-term interest rates.

    Continue Reading...