News Regulators 

Bank of Japan’s Kuroda calls for mix of steps to boost economic growth

“But he said fiscal spending and structural reforms to boost an economy’s potential growth will help enhance the effect of monetary easing” writes Midwest Communications Inc for 95kqds.com. “In responding to significant downward pressure (on growth), a policy mix of monetary easing, flexible fiscal policy and steps to raise the natural rate of interest could be effective.”. The BOJ should examine financial functioning and make appropriate policy responses, so that the cost of monetary easing is reduced.”. “We are equipped with unconventional tool kits, so there is no need to…

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News Regulators 

Japan’s Abe says expects BOJ to weigh benefits, costs in deciding policy

“TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe said on Tuesday he expects Bank of Japan Governor Haruhiko Kuroda to make an appropriate decision on monetary policy while weighing the benefits and costs of each step” writes Midwest Communications Inc for 95kqds.com. Abe made the remark in parliament, when asked about the possibility the BOJ may loosen monetary policy further by deepening negative interest rates. Under a policy dubbed yield curve control (YCC), the BOJ pledges to guide short-term rates at -0.1% and the 10-year government bond yield around 0%. Source:…

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Markets News Regulators 

BOJ hopes new phrase will keep yen bulls at bay

“Failure to act when other central banks were easing risks triggering significant yen rises, putting further pressure on exports and cooling business sentiment” writes Midwest Communications Inc for 95kqds.com. Many BOJ officials are also wary of the rising cost of prolonged easing, such as the strain ultra-low rates is inflicting on financial institutions’ profits.But while the BOJ may have succeeded in keeping yen bulls at bay for now, it also has to prevent markets from pricing in an October easing too heavily and cornering it into action.BOJ policymakers instead had…

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News Regulators Stocks 

Asia stocks mostly edge higher as Fed cuts rate; Bank of Japan keeps monetary policy steady

“Mainland Chinese stocks were mainly up by the afternoon, with the Shenzhen component rising 0.41% and Shenzhen composite adding 0.37%” writes Eustance Huang for cnbc.com. Following the employment data release, the Australian dollar last changed hands at $0.6786 after seeing highs above $0.684 in the previous session.Hong Kong’s Hang Seng index, however, fell 1.24% as shares of life insurer AIA dropped 2.98%. Source: cnbc.com

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Markets News Regulators 

If markets stay calm, BOJ may hold fire despite ECB’s loosening

“Running short of ammunition to ease further, BOJ policymakers, however, want to keep their powder dry for as long as possible in case Japan’s economy runs into greater trouble” writes Midwest Communications Inc for 95kqds.com. Under the policy, dubbed yield curve control (YCC), the BOJ guides short-term rates towards -0.1% and the 10-year government bond yield to around 0%.Increasing signs of slowing global demand have made Japanese central bankers less confident about an early pickup in global growth, making them more open to debate over easing policy.Another problem the BOJ…

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News Regulators 

Trade optimism pressures yen but caution prevails ahead of Fed, BOJ

“The Fed cut rates in July for the first time since 2008” writes Midwest Communications Inc for 95kqds.com. “We’ve managed to scale back our pessimism about U.S.-China trade talks, which is a supportive factor for now,” said Takuya Kanda, general manager of research at Gaitame.com Research Institute in Tokyo.The yen, widely considered a safe-haven currency, tends to rise when trade tensions worsen but reverses course and weakens when concern about trade friction eases. Source: 95kqds.com

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GBP Markets News Regulators 

Asia markets climb as Bank of Japan keeps monetary policy steady

“Asia Pacific markets mostly traded higher as investors reacted to the Bank of Japan’s monetary policy decision and economic outlook” writes Kiyoshi Ota for cnbc.com. Chinese mainland shares also traded higher: The Shanghai composite was up 1.29 percent while the Shenzhen composite added 1.74 percent. Source: cnbc.com

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Markets News Regulators 

Abe: Recognises BOJ has yet to meet price target, but what’s important is job growth

“ForexLive Even looking at the jobs-to-applicants ratio (below), the story is still the same” reports forexlive.com. It highlights increasing labour shortage in the economy with 163 positions available for every 100 job seekers but despite tight conditions it is not translating into meaningful growth in wages and in turn, inflationary pressures.That said, labour shortage is another problem for Japanese authorities as they seek to deal with an aging and declining population that is leading to labour market conditions not seen since the 1970’s. The idea is that jobs growth and…

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