Tag: #Bank of Japan

Japan’s core machinery orders fell more than expected in July, as manufacturers balk at new investments in the face of sluggish global growth and weakness in major market China, pointing to a difficult period ahead for the world’s third-largest economy.

The yen has been steadily weakening after Japan’s central bank had adjusted its stance on its yield curve control policy on July 28, sending 10 year Japanese government bonds to its highest levels in nine years.

The benchmark 10-year Japanese government bond yield hit a fresh nine-year peak on Thursday before pulling back after the Bank of Japan again intervened to cool the speed of the rise.

The Bank of Japan announced Friday “greater flexibility” in its monetary policy — surprising global financial markets.

The market is pricing 25 basis point hikes for the Federal Reserve and the European Central Bank, but economists will be closely scrutinizing communications on their future rate paths.

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Japan’s central bank maintained its ultra loose monetary policy on Friday, electing to support fragile economic growth at a time of swirling global uncertainty.

Bank of Japan Governor Kazuo Ueda said changing the central bank’s policy target to the five-year bond yield, from the current 10-year zone, would be among options if it were to modify its yield curve control (YCC) policy in the future.

Finance leaders of the Group of Seven (G7) advanced economies will discuss this week ways to strengthen the global financial system, Japan’s finance minister said on Tuesday, as recent U.S. bank failures bring the risk of digital bank runs into focus.