Latest news with #UedaKazuo
NHK
3 days ago
- Business
- NHK
BOJ to slow cuts in bond buying in April next year
The Bank of Japan has decided to slow the pace of reductions in bond purchases next year to avoid market instability. The bank's target of around 0.5 percent for short-term rates will remain in place. It made the announcements after its two-day policy meeting ended on Tuesday. The BOJ decision comes amid uncertainty about the outlook for Japan's economy after US President Donald Trump's imposed additional import tariffs this year. Investors have been watching for clues to how the central bank may adjust its plan for cutting the amount of Japanese government bonds it purchases monthly. From April 2026, the BOJ will aim to reduce purchases by about 200 billion yen, or 1.3 billion dollars, every three months. That compares with the current plan to cut the amount by about 400 billion yen, or 2.7 billion dollars, every quarter. "Long-term interest rates should be formed in financial markets in principle," BOJ Governor Ueda Kazuo said at a news conference. "It is appropriate for the Bank of Japan to reduce its purchase amount of Japanese government bonds in a predictable manner, while allowing enough flexibility to support stability in the JGB market. If the pace of reduction is too fast, that could have an unexpected effect on market stability. The balance between these two ideas and the opinions of the market participants were taken into account at today's meeting. The measures were decided to improve JGB market functions and provide stability." The JGB market has been volatile recently due to concerns over worsening fiscal health, sometimes causing prices to fall and long-term yields to rise sharply.
NHK
3 days ago
- Business
- NHK
BOJ keeps rate target unchanged at around 0.5%
The Bank of Japan has decided to keep its benchmark interest-rate unchanged. The central bank target of around 0.5 percent for short-term rates will remain in place. It made the announcement after its two-day policy meeting ended on Tuesday. The BOJ decision comes amid uncertainty about the economic effects in Japan of US President Donald Trump's tariff measures. The Bank of Japan has also decided to taper planned reductions in monthly purchases of Japanese government bonds. From April 2026, the bank will aim to reduce purchases by about 200 billion yen, or about 1.3 billion dollars, every three months. That compares with the current plan to cut the amount by about 400 billion yen, or about 2.7 billion dollars, every quarter. BOJ Governor Ueda Kazuo is set to explain the decision and future monetary policy in a news conference later in the day.
NHK
27-05-2025
- Business
- NHK
BOJ chief to cautiously weigh rate hike amid uncertainty
The Bank of Japan chief has suggested again that the bank will cautiously weigh a further rate hike amid extremely high uncertainty. BOJ Governor Ueda Kazuo was speaking at an international conference in Tokyo attended by other countries' central-bankers. Ueda said inflation in Japan has picked up again, driven primarily by higher prices of food, most notably rice. He said the bank will "adjust the degree of monetary easing" if incoming data provide a reason for greater confidence that economic activity and prices are improving. At the same time, the BOJ chief pointed to growing uncertainty, particularly that related to trade policy, in an apparent reference to US tariff measures. In a transcript of his speech, Ueda confirmed that the bank would judge, "without any preconceptions," whether its outlook for the economy and inflation will be realized. That statement suggested that the bank will continue to cautiously assess the tariffs' impact on the economy and prices in its decision on whether to further hike interest rates.
NHK
30-04-2025
- Business
- NHK
BOJ policy board expected to lean toward keeping key interest rate unchanged
Policymakers at Japan's central bank are expected to lean toward keeping the key policy interest rate unchanged at their current meeting due to US tariff measures and other factors. The present rate stands at around 0.5 percent. The Bank of Japan opened its two-day policy board meeting on Wednesday. Nine senior BOJ officials, including Governor Ueda Kazuo, are believed to have discussed economic and price trends on the first day. Prices have recently been on the rise in Japan owing to widespread wage hikes especially at large companies. Another factor is rising prices of rice and other products. However, a growing number of BOJ officials say the pace of future economic growth and price increases could become slower than forecasts given up to now. They say the imposition of tariffs by the US could prompt Japanese businesses to cut back on their exports and investments. Financial markets also remain volatile. Japan and the US have already entered into tariff negotiations. On the other hand, friction between Washington and Beijing remains high. It is unclear to what extent the impact of US tariffs will escalate. Analysts are closely watching how the BOJ policymakers will assess the impact of US tariffs. Attention is also focused on how they will steer their future monetary policy.
