Former senior officials of the Japanese Ministry of Finance: Market volatility has not had a lasting impact, and the central bank may raise interest rates before the end of the year.
A former senior official from Japan's financial regulatory institution said that given the recent market volatility has not had a lasting impact, the Bank of Japan may still consider raising interest rates again before the end of the year.
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"Black Monday" replay? Japanese stocks fell more than 3% at the opening, triggered by the US non-farm data and causing market panic.
On Monday this week, the Japanese stock market experienced another sharp drop, reminiscent of the "Black Monday" from the beginning of last month. Analysts believe that the decline in the Japanese stock market is due to the strengthening of the yen, which is suppressing the profit prospects of exporters, and also due to disappointing non-farm payroll data from the United States, which has caused concerns about the local economy.
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Haruhiko Kuroda implied that the Bank of Japan still has a long way to go to reach the neutral interest rate.
Former Bank of Japan Governor Haruhiko Kuroda has put forward a rough view on Japan's neutral interest rate, suggesting that the bank has a significant room for interest rate hikes in the process of policy normalization. Kuroda, speaking via video link at the Bund Financial Summit held in Shanghai on Friday, said that the Bank of Japan's attempt to gradually approach the nominal neutral interest rate may be lower than 2%. He said that the short-term nominal interest rate may be lower than 2%, perhaps around 1.5% or even lower. The neutral policy interest rate is considered to be a level of interest rates that neither restricts nor stimulates economic growth. According to the median expectations from a survey conducted last week, economists expect the Bank of Japan to raise its benchmark interest rate during the current tightening cycle.
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Praichi: If Japan's inflation in the second half of the year is higher than expected, the Bank of Japan may raise interest rates again in October.
Arif Husain, Global Head of Fixed Income and Chief Investment Officer at PIMCO, stated that if the yen continues to weaken or wages unexpectedly grow strongly, inflation in Japan in the second half of the year may be higher than expected.
Unafraid of a repeat of 'Black Monday'? Former officials of the Bank of Japan: The country may raise interest rates twice this year!
Tsutomu Watanabe, a former official of the Bank of Japan and one of Japan's leading experts on inflation, has stated that the pace of interest rate hikes in Japan may be faster than expected. There may be two more rate hikes this year. He suggests that the Bank of Japan should be more proactive in communicating its view on the interest rate path.
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A Follow-up to Japanese Monetary Policy – Commerzbank
BOJ Likely to Make Final Rate Hike in October
Bets Against Yen Fading, But It's Not Out of the Woods Yet -- Market Talk
The call for rate hikes is growing louder! Director of the Bank of Japan: If the economic data is reasonable, the rate hikes will continue.
In a speech on Thursday, Takada Tsune stated that if the inflation trend is consistent with the forecast, it is necessary to adjust the 'degree of monetary easing' of the mmf policy.
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