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Unfazed by global exit talk, BOJ policymakers confirm need to keep stimulus
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BOJ must avoid premature monetary tightening - July mtg summary
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Global commodity inflation won’t pull inflation to BOJ’s goal
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BOJ cut growth f’cast, extended pandemic-relief scheme in July
Bank of Japan policymakers appeared undeterred by increasing global debate on withdrawing crisis-mode stimulus, with some calling for the need to avoid a premature tightening of monetary policy, a summary of their debate at the July meeting showed.
Stronger-than-expected inflation has taken centre stage in the policy debate among major central banks including the Federal Reserve, sparking market expectations of a gradual but steady exit from coronavirus pandemic-relief measures. With Japan’s economy still reeling from the pandemic, the BOJ must sustain its ultra-loose policy, one board member was quoted as saying in the summary released on Wednesday.
“Rising commodity prices could push up year-on-year growth in consumer inflation. But there’s still some distance to stably achieving our 2% inflation target, which means it’s important to avoid a premature monetary tightening,” another opinion showed. “In Japan, it’s necessary to patiently continue with monetary easing to meet our price goal in cooperation with the government,” a third opinion showed. The remarks highlight the dominant view among BOJ policymakers that recent global commodity inflation likely won’t spur broader rises in consumer inflation that would allow them to debate a near-term withdrawal of stimulus. At the July 15-16 meeting, the BOJ kept monetary policy steady and extended the deadline for a loan scheme aimed at channeling funds to small firms hit by the pandemic.
The central bank also cut this fiscal year’s growth forecast as new emergency curbs to combat the pandemic hurt consumption, reinforcing expectations that it will lag global counterparts in dialing back its massive stimulus.
https://www.reuters.com/article/japan-economy-boj/update-1-unfazed-by-global-exit-talk-boj-policymakers-confirm-need-to-keep-stimulus-idUSL4N2P402N
BOJ will be the last to remove any of the global shit-show of stimulus...they can't as they own a lare portion of the Equity and ETF market(s) on the Nikkei.
Been 'buying' negative yield paper since 2013
China sets yuan midpoint at weakest in over 3 months
China’s central bank on Wednesday dragged its official yuan midpoint to the weakest level in more than three months to reflect broad weakness in the spot market a day earlier following a sharp sell-off in Chinese stocks. The People’s Bank of China (PBOC) set the midpoint at 6.4929 yuan per U.S. dollar prior to market open, 195 pips or 0.3%, weaker than the previous fix of 6.4734. It was the weakest since April 23.
Wednesday’s official guidance largely matched market forecasts, and it was 5 pips stronger than Reuters’ estimate of 6.4934.
https://www.reuters.com/article/china-yuan/china-sets-yuan-midpoint-at-weakest-in-over-3-months-idUSAZN0F0W00
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HAWK15 USAF Global Hawk heading ne off U.A.E. from Al-Udeid AB Doha, Qatar
A little after 7am at 53k ft
TITAN25 USAF E-4B Nightwatch departing Singapore-Paya Lebar AB and heading to Hanoi
UK Secreatry for Defense there last week weds.-fri.
UK Secretary of State for Defense pays first official visit to Vietnam
https://tuoitrenews.vn/news/politics/20210722/uk-secretary-of-state-for-defense-pays-first-official-visit-to-vietnam/62205.html
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