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© 2023 AFPBOJ eases grip on ultra-loose monetary policy
By Kyoko HASEGAWA TOKYO©2024 GPlusMedia Inc.
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© 2023 AFP
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Cards fan
If this is true then, what do you think this is?
That's inflation.
Chabbawanga
It isnt, but it definitely doesnt hurt to diversify your assets.
Yubaru
huh? What do you call the increase, across the board, in costs? We are in the middle of an inflationary economy with zero wage growth, which is going to kill the average consumer here.!
Meiyouwenti
I wonder if the writer understands what she’s writing about.
JeffLee
An early step toward policy normalization, it would seem.
Yubaru
This "title" makes zero sense. "Ultra-loose" police, means no grip what so ever.
scotchontherocks
An overly convoluted way of saying the BOJ did nothing
Peter Neil
Half or more read the headline and thought the BoJ lost money somewhere. Where did they loose it?
Pacificpilot
Japan should not be listed as the second largest economy in the world. Its proposed new minimum wage of a little over seven dollars an hour is criminal. Japan’s industrial complex is thriving off the backs of its blue-collar workers. In reality part time workers and females are paid less than the proposed minimum wage. In California alone, for example, the minimum wage is over $15 an hour. In China, the world’s largest economy after the US, the minimum wage is on par with Japan but his pension system is a farce. Chinese citizens must work into their 80s to make ends meet even with their pensions from their communist leaders in Beijing. Chinese communism has lost its way for there is a great disparity from its fat cat bureaucratic leaders throughout the provinces and the common workers in the villages. In this perspective Japan is one step ahead of China but miles behind America.
theResident
@onedragon: Dollar/Yen should be 180? Why? It's headed back to 130 if anything and unless there is an explosion in US inflation and further rate rises there, we may not see 145 again this year.
Antiquesaving
Well let's see, so we will has a little higher prices on imported goods, but, Japan is seeing a trade surplus and an influx of investment from outside Japan.
I for one would rather forego a few expensive items even if my favourite imported foods become an even rarer occasional luxury than have to deal with the higher end higher interest rates we are seeing in other countries.
Higher interest rates will mean higher mortgages, leading to higher rents as landlords pass on the increase to tenants.
Companies will pay more to borrow and pass that on to consumers.
We are seeing this playout in North America and other places, as the interest rates are hiked to curb inflation but all it seems to do is increase the cost of everything.
So the choice is a little inflation with a trade surplus and foreign investment coming in or raising rates a higher yen, mortgages and rents increase losing the trade surplus and ending foreign investment coming in.
Let's face it the rapid interest rates increase has done nothing to curb inflation in North America and they keep increasing it with little or no positive results.
theResident
@Yubaru - Then you don't understand the definition of 'ultra-loose' in this context.
theResident
They didn't 'do' nothing, as you will have seen the effect on the currency. The less they defend yields now, the stronger the Yen will become especially if inflation slows down in the US and the FRB tapers rate increases.
memoryfix
The market players internationally just do not understand the Japanese. When the BOJ says they may take action, they actually believe them!
onedragon
The Yen should be more like 180 to the US
dollar. There is nothing happening in Japan at the moment. A lazy country riding on the coat tails of the United States.
Jonathan Prin
Inflation is not going to happen.
Tax level to raise.
And buying power is surely to decrease as yen will go down the hill on a long term trend.
Be prepared with a population going to lose 40 millions persons in about 30 years.