ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

Bank of Japan likely to keep monetary policy steady on December 20

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bank of Japan likely to keep monetary policy steady on December 20
A Japanese flag flutters atop the Bank of Japan building in Tokyo. Image Source: Reuters

The Bank of Japan (BOJ) is likely to keep monetary policy steady and give a more upbeat view of the economy on Tuesday, reinforcing market expectations that its future policy direction could be an increase - not a cut - in interest rates.

Japanese long-term interest rates have risen in tandem with global bond yields on expectations of steady US interest rate hikes and the perceived inflation-stoking policies of incoming US President Donald Trump.

This has tested the BOJ`s resolve to cap the 10-year Japanese government bond (JGB) yield around its zero percent target.

That in turn has led to some market expectations the BOJ may raise its target for the 10-year JGB yield, which briefly hit 0.1% last week, as early as next year.

With no policy action expected at the two-day rate review that ends on Tuesday, financial markets are focusing on what BOJ Governor Haruhiko Kuroda will say at his post-meeting news conference about the recent rise in yields.

"Kuroda will probably warn that an abrupt jump in bond yields is unwelcome," said Yasuhide Yajima, chief economist at NLI Research Institute.

ALSO READ: Bank of Japan keeps policy rates unchanged 

"He might also sound more upbeat about the economy but that could give markets the impression the BOJ is about to raise rates, which it won`t do soon. It`s tricky communication."

With the economy showing some signs of life, the BOJ is expected to keep unchanged its pledge to guide short-term rates at minus 0.1% and the 10-year JGB yield around zero percent.

Reflecting a pick-up in emerging Asian demand and factory output, the central bank is also seen upgrading its language to signal its confidence that the economy is headed for a steady, export-led recovery, sources have told Reuters.  

At the previous meeting on November 1, the BOJ said the economic trend was for moderate recovery, but slowing emerging market demand was weighing on exports and output.

ALSO READ: US Federal Reserve raises key interest rate, sees three hikes in 2017

While recent yen falls have heightened hopes for a rebound in exports, BOJ officials are by no means complacent on the outlook as any remarks by Trump warning against further dollar gains could reverse the positive market tide.

Kuroda is thus likely to reiterate that risks to the economic and price outlook are skewed to the downside.

Market expectations of additional monetary easing have receded after the BOJ revamped its policy framework in September to one better suited to a long-term battle against deflation.

With inflation stubbornly shunning its 2% target, however, the BOJ is in no rush to raise its 10-year JGB yield target, and sees any such move as a long-term option.

Still, the central bank is more open to discussing the idea and may contemplate raising the target as early as next year if long-term rates reflect clear improvements in the economy and keep rising, sources have told Reuters. 

ALSO READ: BOJ adopts long-term interest rates target; sets yield curve control

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Bank of JapanEconomyMonetary PolicyHaruhiko KurodaDonald TrumpInterest RateYenUS Interest Rate Hike
Written By: Reuters
Updated: Tue, Dec 20, 2016
09:31 am
Tokyo , Reuters
RELATED NEWS
Bank of Japan pushes back inflation timeline by one year Bank of Japan pushes back inflation timeline by one year
Bank of Japan keeps policy rates unchanged Bank of Japan keeps policy rates unchanged
BOJ adopts long-term interest rates target; sets yield curve control BOJ adopts long-term interest rates target; sets yield curve control
US Federal Reserve raises key interest rate, sees three hikes in 2017 US Federal Reserve raises key interest rate, sees three hikes in 2017

LATEST NEWS

Traders' Diary: Buy, sell or hold strategy on Infosys, Paytm, Tata Power, Radico Khaitan, BEL, 15 other stocks today

IPL 2023 Full Schedule: Hardik Pandya's Gujarat Titans to take on MS Dhoni's CSK in opener - Full Match List, Time Table, Schedule, Timings

How GPT4 is different from ChatGPT or GPT3.5 - All you need to know

IPL 2023 GT vs CSK: Date, Time, Venue, Squad, Head-to-Head Record - All you need to know about Chennai Super Kings vs Gujarat Titans

BCCI Player Contracts List 2022-23: Full list of biggest gainers, losers, and players who were not retained

Ram Navami Stock Market Holiday: When are NSE, BSE closed this week?

Income Tax: How will AI, Machine learning, and data analytics simplify tax process in India?

Opening Bell: Nifty comes within inches of 17,000, Sensex up over 100 pts; PowerGrid, Apollo Hospitals, Hindalco top blue-chip gainers

Stocks in focus: VRL Logistics, Sun Pharma, Paytm, other stocks worth tracking

Anil Singhvi strategy March 27: Key share market cues, important levels to watch in Nifty50, Nifty Bank today

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV