Bank of Japan Governor Kazuo Ueda has outlined the central bank's cautious approach towards ending its massive easing program, emphasizing the importance of a gradual exit to avoid rapid interest rate hikes. Ueda's comments come amidst rising medium and long-term inflation expectations, aiming for a 2% target. Despite concerns, Ueda does not foresee significant upticks in mortgage loan rates or corporate borrowing costs, attributing this to the bank's decision to continue with quantitative easing measures. Additionally, Ueda highlighted the bank's plans to reduce its holdings in exchange-traded funds (ETFs) and Japanese government bonds (JGBs) carefully to minimize market disruptions. This strategic shift is in response to strengthening wage-inflation cycles, as evidenced by recent wage negotiation data, service price rises, and the improvement in profits for small and mid-sized companies. The RengΕ 'spring wage offensive' negotiations in 2024 have resulted in an average wage rise of 5.25%, slightly adjusted from the preliminary figure of 5.28%, with base pay increases also revised to 3.64% from the initial 3.70%.
π΄ JAPAN'S RENGO: BASE PAY TO RISE 3.64% VS THE INITIAL 3.70%.
π΄ JAPAN'S RENGO TWEAKS ANNUAL WAGE HIKES TO 5.25% VS INITIAL 5.28%.
π΄ JAPAN'S RENGO: JAPAN FIRMS OFFERED AVERAGE WAGE HIKES OF 5.25%, LARGEST UNION GROUP - SECOND TALLY
Bank of Japan Governor Kazuo Ueda said the central bank will eventually scale back bond purchases and allow market forces to set long-term interest rate moves, signaling his resolve to move steadily towards normalising ultra-loose monetary policy https://t.co/lSdPWR8KWU
BOJ's Ueda eyes future drop in bond buying in sign of steady exit https://t.co/sTsVDHYHPY https://t.co/zoecxdpLPe
RengΕ βspring wage offensiveβ negotiations in 2024 resulted in an average wage rise of 5.28%, based on preliminary figures. https://t.co/CiZEaQHDLa
BOJ Gov Ueda: Plans to Reduce JGB Buying After Confirming How Market Digests BOJ's Latest Policy Change
π΄ BOJ GOVERNOR UEDA: JGB HOLDINGS LIKELY TO REMAIN UNCHANGED AND HAVE A STIMULUS EFFECT ON THE ECONOMY, THOUGH WE WON'T DESCRIBE THIS AS QQE.
Governor Kazuo Ueda said the Bank of Japan saw the risk of potentially having to raise interest rates rapidly if it waited too long to end the bankβs massive easing program https://t.co/wSzV00rHLf
π΄ BOJ GOVERNOR UEDA: PROPOSALS EXIST TO REDUCE BOJ'S ETF HOLDINGS, BUT I WON'T COMMENT ON INDIVIDUAL PROPOSALS.
π΄ BOJ GOVERNOR UEDA OUTLINES PLAN TO MINIMIZE LOSSES AND MARKET DISRUPTIONS IN SELLING BOJ'S ETF HOLDINGS
π΄ BOJ GOVERNOR UEDA SAYS BOJ WILL DEVELOP ETF HOLDING REDUCTION GUIDELINES BASED ON MARKET DEVELOPMENTS
π΄ BOJ GOVERNOR UEDA EXAMINES OPTIONS TO REDUCE ETF HOLDINGS
π΄ BOJ GOVERNOR UEDA: NO PLANS TO IMMEDIATELY SELL BOJ'S ETF HOLDINGS
π΄ BOJ GOVERNOR UEDA: NO CLEAR IDEA ON TIMING OF REDUCING JGB BUYING OR SCALING BACK BALANCE SHEET SIZE
π΄ BOJ GOVERNOR UEDA PLANS TO GRADUALLY SHRINK BALANCE SHEET AND CUT JGB PURCHASES AS STIMULUS ENDS
BoJ Gov Ueda: Preliminary Wage Negotiation Outcome Tends To Be Revised Down But Even So, We Thought Final Outcome Would Be Fairly Strong Number
π΄ BOJ GOVERNOR UEDA: SMALL FIRMS MAY STRUGGLE TO INCREASE WAGES, BUT PROFITS ARE IMPROVING FOR SMALL AND MID-SIZED COMPANIES OVERALL
π΄ BOJ GOVERNOR UEDA EXPECTS FINAL WAGE NEGOTIATION OUTCOME TO BE STRONG DESPITE POTENTIAL DOWNWARD REVISION
π΄ BOJ GOVERNOR UEDA NOTES NEGATIVE RATE AND OTHER TOOLS BOOSTED DEMAND BY PUSHING DOWN REAL INTEREST RATES BUT HAD SIDE-EFFECTS ON JGB MARKET FUNCTION
#BOJ UEDA EXPECTS NO SIGNIFICANT UPTICK IN MORTGAGE LOAN RATES OR CORPORATE BORROWING COSTS FROM LATEST DECISION Yep, because they doubled down on QE to sterilise the rate hike Narrator: total schizophrenia π https://t.co/rhb8AZv5Q8
π΄ BOJ GOVERNOR UEDA EXPECTS NO SIGNIFICANT UPTICK IN MORTGAGE LOAN RATES OR CORPORATE BORROWING COSTS FROM LATEST DECISION
BoJ Gov Ueda: Medium, Long Term Inflation Expectations Heading Toward 2% - Recent Wage Negotiation Data, Hearing On Companies Confirmed Wage-Inflation Cycle Strengthening
π΄ BOJ GOVERNOR UEDA NOTES SERVICE PRICES CONTINUE TO RISE MODERATELY DESPITE DISSIPATION OF COST-PUSH PRESSURE ON INFLATION
The Bank of Japanβs tricky path to normalisation https://t.co/wZ6i4zxd2V | opinion