The Bank of Japan (BoJ) made a significant policy shift by ending its negative interest rate regime, the last of its kind globally since 2016, marking its first rate hike since 2007. Despite this move, Japan's real interest rate remains deeply negative. The decision is part of BoJ's broader efforts towards policy normalization, as highlighted by Governor Ueda's actions. Analysts anticipate further rate hikes by October, with potential for more rapid adjustments, amid concerns over the yen's weakness and speculative foreign exchange market movements. Japan's top currency official warned against excessive yen fluctuations, indicating readiness for intervention. This policy change has sparked discussions on its impact on the Japanese economy, stock market volatility, and the global financial landscape, including the potential for increased foreign asset management interest in Japan. Following the BoJ's decision, the volume of bonds with negative interest rates has shrunk to $300mln from a peak of $18tn.
📢Official e-zine just updated! Japan’s rising financial markets underpinned by robust fundamentals are attracting global interest amid governance reforms. Learn more about the topic from an asset management expert’s perspective. https://t.co/9Q58gyx48c
Japan is attracting more interest from foreign asset managers, sparked by the government’s drive to remake Tokyo into a major financial hub, a top regulatory official said. https://t.co/UNq84bTu4D
BOJ Jan. Meeting Discussed Policy after Negative Rate Lifting https://t.co/6geNaMhpTr
Explainer: Japan hiked interest rates. Why is the yen falling? https://t.co/9QtL6Y0L9p https://t.co/eRZy8PdGPi
⚠️ EXPLAINER-JAPAN HIKED INTEREST RATES. WHY IS THE YEN FALLING? Full Story → https://t.co/JWR67B5uyX A week ago Japan raised interest rates for the first time since 2007 in a move that marked a historic shift in monetary policy. https://t.co/FacjNrAH4n
Japan’s top currency official delivered his most robust salvo of warnings in months against speculative moves in the foreign exchange market as the yen continues to hover near a 2022 intervention level. https://t.co/cdA3LYMYKr
Here's how to decode the language used by Japan's policymakers on the yen and possible intervention https://t.co/1M4iA8Ac8Y
Japan is attracting more interest from foreign asset managers, sparked by the government’s drive to remake Tokyo into a major financial hub, a top regulatory official said https://t.co/JX3k7I8YuG
Japan’s currency chief says the country will take appropriate action against excessive fluctuations in the yen without ruling out any options. Boom. He is clearly referring to the possibility of an intervention. Who is ready for another week?
Bank of Japan hikes rates for first time in 17 years. Swiss National Bank first major country to cut rates. Japanese Nikkei at all-time highs. Swiss Market Index (SMI) at 52-week highs.
The absence of the BOJ's ETF purchase program could play out when the bull market ends, and analysts expect an even greater effect if the central bank starts unloading its ETF assets. https://t.co/wLJ6wrAYyT https://t.co/kT9BVvU4zU
Bank of Japan decisions that move billions of dollars routinely appear in the media before they’re officially announced. It's time for the Diet to investigate why. The latest from me and @Moss_Eco, and it's free to read: https://t.co/B6gUvJTvKQ
Intervention threat curbs dollar's ascent towards new high on the yen https://t.co/9yJ1DLLnpG https://t.co/xTQzK2suBk
BOJ MINUTES: ONE MEMBER SAID IF JUDGMENT ON ENDING NEGATIVE RATES IS DELAYED, THAT WOULD HAMPER EFFORTS TO ACHIEVE 2% TARGET AND CALL FOR NEED OF RAPID TIGHTENING
BOJ MINUTES: ONE MEMBER SAID NOW IS ONCE IN A LIFETIME OPPORTUNITY TO CHANGE MONETARY POLICY
BOJ MINUTES: ONE MEMBER SAID SCOPE OF MONETARY POLICY FLEXIBILITY COULD BE LOWER FOR JAPAN ONCE OTHER COUNTRIES HEAD TO CUTTING RATES
BOJ MINUTES: SOME MEMBERS SAID APPROPRIATE TO STOP BUYING ETF, JREIT IF ACHIEVEMENT OF INFLATION TARGET CAN BE FORESEEN
BOJ MINUTES: SOME MEMBERS SAID BOJ IS NOT UNDER PRESSURE TO ACCELERATE RATE HIKES AT PACE THAT IS SEEN IN WESTERN COUNTRIES
🔴 BOJ MINUTES: SOME MEMBERS NOTE BOJ NOT UNDER PRESSURE TO ACCELERATE RATE HIKES AT PACE SEEN IN WESTERN COUNTRIES
🔴 BOJ MINUTES REVEAL SOME MEMBERS SUGGEST HALTING ETF AND JREIT PURCHASES IF INFLATION TARGET SEEMS ACHIEVABLE
BoJ Minutes: One Member Said Scope Of Monetary Policy Flexibility Could Be Lower For Japan Once Other Countries Head To Cutting Rates
Foreign investors have been buying $JPY to buy #Nikkei #stocks What do you think is going to happen to the $JPY once the #Nikkei frenzy ends? Yes, investors will be selling $JPY while the #BOJ keeps printing more $JPY Narrator: a perfect set up for a $JPY meltdown.. 🙄 https://t.co/vxXze6OqOs
🔴 BOJ MINUTES: MEMBER NOTES REDUCED FLEXIBILITY IN MONETARY POLICY SCOPE FOR JAPAN AMIDST GLOBAL RATE CUTS
*BOJ MEMBER: NEED TIME TO MULL HANDLING OF ETF HOLDINGS mull away. take a few extra days even. the shorts can wait.
🔴 BOJ MINUTES: MEMBER SEES ONCE-IN-A-LIFETIME OPPORTUNITY TO CHANGE MONETARY POLICY
BoJ Minutes: One Member Said If Judgment On Ending Negative Rates Is Delayed, That Would Hamper Efforts To Achieve 2% Target And Call For Need Of Rapid Tightening
🔴 BOJ MINUTES: DELAYING JUDGMENT ON ENDING NEGATIVE RATES WOULD HINDER EFFORTS TO ACHIEVE 2% TARGET AND REQUIRE RAPID TIGHTENING, SAYS ONE MEMBER.
BOJ MINUTES: SOME MEMBERS SAID UPSIDE RISKS OF INFLATION GREATLY OVERSHOOTING 2% TARGET HAVE BECOME SMALL
BoJ Members: Shared The View That Chances Of Achieving 2% Inflation Rising Gradually, So If We Can Confirm Virtuous Cycle Of Wages And Inflation, We Would Consider Ending Negative Rates And Other Unconventional Easing Steps
🔴 SOME OJ MINUTES MEMBERS SEE SMALL UPSIDE RISKS OF INFLATION OVERSHOOTING 2% TARGET
BOJ MINUTES: MEMBERS SHARED THE VIEW THAT CHANCES OF ACHIEVING 2% INFLATION RISING GRADUALLY, SO IF WE CAN CONFIRM VIRTUOUS CYCLE OF WAGES AND INFLATION, WE WOULD CONSIDER ENDING NEGATIVE RATES AND OTHER UNCONVENTIONAL EASING STEPS
BOJ MINUTES FROM JANUARY MEETING: MEMBERS AGREED HAS NOT REACHED A STAGE WHERE LIKELIHOOD OF ACHIEVING INFLATION TARGET SUSTAINABLY
SEVERAL MEMBERS OF THE BANK OF JAPAN (BOJ) INDICATE A WILLINGNESS TO UPHOLD LOOSE MONETARY CONDITIONS EVEN IN THE EVENT OF DISCONTINUING NEGATIVE INTEREST RATES
BoJ Member: BoJ Flexibility To Be Reduced When Others Cut Rates
BoJ Member: Delay In Ending Negative Rate Risks Rapid Tightening
🇯🇵💴"I don't have a specific level in mind and even if I did I wouldn't tell you it's 120." - Kanda (not really) ➡️We wrote about the end of the $JPY carry trade last week on Cloak & Dagger. cc @amlivemon https://t.co/9oFwnZtaFk https://t.co/K0kGxD1ZCT
BoJ Members: Likelihood Of Hitting Price Goal Gradually Rising
Bank Of Japan January Minutes Of The Monetary Policy Meeting https://t.co/XJtj6oiwfk
🇯🇵💴"I don't have a specific level in mind and even if I did I wouldn't tell you it's 120." - Kanda (not really) ➡️We wrote about the end of the $JPY carry trade last week. You need to pay attention to this Cloak & Dagger stuff. cc @amlivemon https://t.co/9oFwnZtaFk https://t.co/K0kGxD1ZCT
Japan’s top currency official warned against speculation in the foreign exchange market and said authorities were ready and prepared to take action if needed https://t.co/dOVn28HWXK
*KANDA: WEAK YEN CAN HAVE SIGNIFICANT IMPACT ON INDIVIDUALS *KANDA: IN CLOSE COMMUNICATION WITH FOREIGN AUTHORITIES Gee, another Plaza Accord
🔴 JAPAN'S TOP CURRENCY DIPLOMAT KANDA: WIDENING LONG-TERM INTEREST RATE DIFFERENTIALS BETWEEN JAPAN AND THE US
*KANDA: RAPID FX MOVES HAVE NEGATIVE IMPACT ON ECONOMY *KANDA: BOJ MADE MILESTONE DECISION BASED ON ECONOMY
*KANDA: RECENT FX MOVES AREN'T REFLECTING FUNDAMENTALS
The Bank of Japan has sprung a leak, with decisions that move billions of dollars appearing in the media before they’re officially announced, write @GearoidReidy and @Moss_Eco. Parliament must investigate https://t.co/A0Gt2bytEH via @opinion
Japan stocks could grow more volatile with end of BOJ ETF purchases https://t.co/8uAyffVAaL
The shift in BOJ monetary policy has just begun. More rate hikes are coming. The consequences will be significant for US markets. $SA https://t.co/fzU7TCfzc0
But the BOJ hiked... https://t.co/VkaRBHoT0X
Does this look like long-term 2% inflation in Japan to you? It sure does NOT to me. Blog from KEY discussions with sparring partners in the City over the past week here -> https://t.co/XLGKURGbCc https://t.co/MXlL8MF4Bd
Ok I rarely do this but… A weekend thread (and a warning!) on the yen I’m bearish yen and think it could be headed much lower. 180? 200? All possible. (1/n) https://t.co/RdCWztbAgV
In case you missed it: After Bank of Japan abolished negative interest rates this week for 1st time since 2016, the volume of bonds w/negative interest rates has shrunk to $300mln. At its peak, there was a volume of $18tn worth of bonds with neg/rates. But this weird experiment… https://t.co/0LugwvF663
In a remarkable turn, Japan has switched up its monetary policy. There is a sense that change is here to stay. But if you take a closer look, all is not as it seems https://t.co/KlxDctKlXe 👇
Is the BoJ in trouble here? We can be at 170 pretty quickly considering we’re testing breakout levels after rate hike, even if it is a pittance . @Citrini7 @lord_fed @ttmygh @JulianMI2 @scientificecon @gave_vincent @TommyThornton @UrbanKaoboy https://t.co/9h62nGCyPu
Is the BoJ in trouble here? We can be at 170 pretty quickly considering we’re testing breakout levels after rate hike, even if it is a pittance . @Citrini7 @lord_fed @ttmygh @JulianMI2 @scientificecon @gave_vincent https://t.co/vxZNv6qKR3
[Warning: stream of consciousness shit post] Japan market is gaining steam and unlikely to stop, the main driver being the shift in mindset of Japanese people, from saving to investing, partly aided by the new NISA tax-incentive program. One beneficiary of this trend are…
Great recap of what @BankOfJapan's Ueda has done to power ahead on policy normalization. How Bank of Japan’s Ueda Dismantled World’s Last Negative Rate #BOJ https://t.co/e40Prf4D4m
Toru Fujioka story: What he writes everyone must read. #BOJ Watchers See Next Rate Hike by October, Risk of Faster Moves https://t.co/DwCzuK9mLX
Japan real interest rate still deeply negative after first rate hike since 2007 https://t.co/rXAhazyo8h
It was a big week for central banks and especially the Bank of Japan, which ended its negative interest rate regime, the world’s last. Here’s your Weekend Reading https://t.co/TClYzTB6Wt