Japan Pressures BOJ to Boost Economy as Yen Threatens Expansion Aug. 27 (Bloomberg) -- Prime Minister Naoto Kanâs government is stepping up pressure on the Bank of Japan to spur growth as it tries to jump start a slowing economy under threat by a currency at a 15-year high. The ruling Democratic Party of Japan called on the central bank to âspeedily take further stepsâ in a stimulus package proposal presented to Kan in Tokyo yesterday. Vice Finance Minister Motohisa Ikeda, a DPJ lawmaker, also said the bank needs to âdo everything it canâ to tackle deflation. Government calls for central bank action are rising as Kan formulates his policy response to bolster economic growth as the yen trades near its highest level since 1995. The pressure on Bank of Japan Governor Masaaki Shirakawa also comes as Kan tries to support the nationâs expansion ahead of a leadership challenge from his partyâs most powerful politician next month. âThey donât really know what to do so theyâre turning the heat up on the BOJ,â said Yoshiki Shinke, senior economist at Dai-Ichi Life Research Institute in Tokyo. âThey donât have enough time to act on their own in a timely way because the leadership contest is right around the corner and theyâre restrained by their public debt.â Pressure on the central bank has been rising since it kept its key overnight lending rate at 0.1 percent and refrained from introducing new credit measures at an Aug. 9-10 meeting, days before the yen surged to its highest level since 1995 against the dollar. A group of DPJ lawmakers said on Aug. 13 the bank needed to engage in âlarge-scale monetary easingâ and added it could be seen as âunderestimatingâ the risks the currency posed to the recovery. http://noir.bloomberg.com/apps/news?pid=20601087&sid=aqzUN8bomUaw&pos=1 What is BOJ waiting for ? 10 % unemployment rate ? 30 % export slump ? Actively worsening deflation expectations ? Good luck !
1. If they have to intervene, the next 24 hours would be good for that, as the USD/JPY is pulling back. They can ignore a rally if they decide tonight (today in Japan). 2. Why you did not add US stock market to the list? A less strong yen might also be good for stocks?
TOKYO (Kyodo)--Prime Minister Naoto Kan will hold a press conference later Friday on what the government will do to deal with the yen's surge, Economy, Trade and Industry Minister Masayuki Naoshima said. http://e.nikkei.com/e/fr/tnks/Nni20100827D27JF648.htm A press conference is a good idea. But please no bla, bla, bla...bli, bli, bli,..... blu, blu, blu... I want ACTION !
Aug. 27 (Bloomberg) -- Japan Prime Minister Naoto Kan said the government is ready to take âboldâ action in the currency market when necessary. Kan, speaking today in Tokyo, said volatile foreign exchange movements are harmful to economic and financial stability. He said the government will compile an outline of its stimulus plan on Aug. 31. Kan said he wants the Bank of Japan to implement monetary policy âswiftlyâ and will talk with central bank governor Masaaki Shirakawa when he returns from the U.S. http://noir.bloomberg.com/apps/news?pid=20601087&sid=at3xJjYje4R0&pos=3 Ha, ha, ha, ha. ROFL ! Is there anybody more incompetent than this Japanese DPJ government ? "Bold" action on what ? Flying the central bank governor back to Tokyo ???? LDP needs to come back to power over there...
Finance Minister Yoshihiko Noda said Saturday he will take "decisive" steps against the yen if it becomes necessaryâa word often used by officials in the past to signal that intervention could be imminent. http://online.wsj.com/article/SB100...913260.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews What took you 4 weeks to use the magic words, Mr. Noda ?
Aug. 30 (Bloomberg) -- The Bank of Japan expanded a bank- loan program, stepping up its monetary stimulus for the first time since March after the economyâs recovery weakened and the government pressured the central bank to act. The BOJ will boost the amount of funds in the facility by 10 trillion yen ($116 billion) to a total of 30 trillion, the bank said in a statement after an emergency meeting in Tokyo. Governor Masaaki Shirakawa led the gathering after cutting short a U.S. trip in the wake of increasing calls from politicians for the BOJ to help stem a surge in the yen to a 15-year high. Stocks pared gains as the size of the step disappointed some analysts, and the yen recouped losses that were sparked by news of the meeting. The limited measure turns attention to government plans to bolster growth, with economic ministers gathering later today to discuss a fiscal stimulus plan. âMonetary policy alone canât change the current situation in Japan,â said Kyohei Morita, chief economist at Barclays Capital in Tokyo. âThe government should play a central role to relay the liquidity to the real economyâ by having more fiscal spending, he said. http://noir.bloomberg.com/apps/news?pid=20601087&sid=a3uwuzZIh310&pos=1 Decisive steps ? WOW. I am so unimpressed...