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BOJ chief stays course on ultralow rate policy despite sharp yen drop


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What easing? Kuroda is only making it more miserable for Japan. He’s not fit for the job. Boot him out or have someone who at least will do something to make things better.

10 ( +18 / -8 )

Mr. Kuroda

Do as you believe for the best. No need to care for those panicking themselves by converting their yen_based salary

-18 ( +5 / -23 )

Monetary easing (low interest rates) needed to ensure wage growth??? That policy hasn't worked for the past decade and has only led to higher company profits. The current policies are leading Japan into stagflation. Time for some new ideas perhaps?

9 ( +18 / -9 )

I remember the 2% target was due 2014 when he and Abe made the plan. It has been almost 10 years and Kuroda keeps moving his own deadline. Why is he still at the BOJ when he keeps on failing? Kuroda needs to go 8years ago.

14 ( +20 / -6 )

Japan’s corporate system and it’s outdated politicians are ruining the country.

-1 ( +14 / -15 )


i guess, hope this is second degree humour. Everybody with low income, pensions is suffering like hell to buy daily necessities. These people are getting poorer by the day. I feel really sorry for them.

8 ( +13 / -5 )

The U.S. and UK have raised their interest rates to curb inflation, but Japan wants to keep the weak yen to increase the inbound foreign tourists. They don't want to put a wrench into the works just whe tourism has restarted. All of this at the expense of local consumers....great.

6 ( +10 / -4 )

Easing makes sense right now. 2.8 percent of cost-push inflation isn't nearly enough to warrant rate hikes.

-7 ( +5 / -12 )

Real people are suffering badly at the utter incompetence of the j "government".

There's no end to the collapsing yen with its result of ever increasing prices. Next week the yen is expected to collapse into the 150 yen level and accelerate downwards. When will the yen have depreciated enough for this "government"? It's utterly pathetic, incompetent and brings shame to Japan on the world stage.

-7 ( +12 / -19 )

So the same policy is seen as appropriate to fight deflation and to fight high and rising inflation?

Either they don't know what they are doing or they have another agenda that they are keeping under wraps.

8 ( +11 / -3 )

Bank of Japan Governor Haruhiko Kuroda says that monetary easing is still needed for Japan to ensure wage growth

Monetary easing has not resulted in wage growth for 25 years but has been a source of easy money for financials and Japan Inc

Kuroda: We must continue monetary easing QE to ensure wage growth!

Some basic central bank gaslighting.

Even the billionaires know it is a scam but the public will accept the central bank economist pronouncements


8 ( +13 / -5 )

to ensure wage growth

Ridiculous, no other central bank in the world claims printing money will increase wage growth.

They are just doing it to bail out the government.

With inflation, you might get nominal wage growth in time. But what workers need is real wage growth, growth in wages - after inflation is accounted for.

More pain for Japan’s workers

10 ( +13 / -3 )

2% at least is the annual effective rate at which people here are being impoverished. Zero pay increases, even cuts to existing pay, at a time when inflation is working in the other direction, will do it every time.

Time to consign these born to rule types, along with their lamentable and miserably failing economic rationalist prescriptions, to the garbage heap of failed ideas. We need people who aren’t afraid to embrace alternatives; not naked emperors with a demonstrable lack of vision, who can only be relied upon to continue trying to prove Einstein’s definition of insanity wrong.

3 ( +8 / -5 )

A note to those who think interest rate hikes is a next step for the BOJ.

I don’t think it is.

The BOJ is printing a ton of yen, tens of trillions.

Raising interest rates laid on reserves at the BOJ, while printing money willy nilly, makes no sense.

Before hiking interest rates, the BOJ needs to first stop printing money to buy government debt.

When there is no buyer for Japanese government debt, long term interest rates will go up (and big time we’re they to suddenly stop).

The end game here is, like the profligate UK, Japan’s government is going to have to stop spending money it doesn’t have and won’t have for centuries, or the lain for residents with yen will continue. Until it becomes politically infeasible to keep going on like this, for the inflation is going to get worse, not better. Kuroda will be gone this time next year, and it will be bad news if the BOJ is still making excuses for why it is financing government spending.

2 ( +6 / -4 )

Well done sir, Right on track.

-3 ( +4 / -7 )

I don't expect any changes to interest rates here for quite some time, it's not so beneficial to Japan to do so anyways. Rate of inflation here is still much lower than what the US and Europe are seeing. Yes prices are rising due to rising commodity prices and yes the weak yen does affect many imported goods but raising interest rates in a heavily consumer based economy would do nothing to help with the prices of food and other items the average consumer buys in the supermarket. Also the low interest rates keep loans more attractive to businesses and even us the consumer for those looking to build a home. There might be a need to intervene into the FX markets for a second time in order to calm the recent volatility but don't expect Kuroda to touch the interest rates, which he and many people know would do more harm than good to an already weak economy.

-7 ( +2 / -9 )

Wage increases? Cripes, how dense is this guy? Any so-called "increases" would not occur until April of next year, at the beginning of the new fiscal year. Between now and then we have to suck up all the price increases.

3 ( +7 / -4 )

Why would the second action work, but not the first?

Most likely there won't be as it is a very very rare occurrence but if other G7 banks decide it might be necessary to do so because the USD refuses to calm down, then yes I could see further buying of yen by the BOJ. I think that what Kuroda is counting on is the Fed in the US slowing down a bit with it's rate hikes which in turn will bring down the USD some and that will help the yen get some strength back. When that happens is anybody's guess obviously but for now no interest rate hikes here for quite some time if at all. For now we all just have to adapt to these price hikes and look at cutting down on the wants and focus more on the needs, best we can.

-2 ( +1 / -3 )

The BOJ has no control over this situation. They are basically just waiting for the global financial situation to sort itself out. If it happens soon then maybe the yen will recover. I hope it does.

0 ( +4 / -4 )

Yield curve control is the real devil in this toxic brew. Kyle Bass of Hyman Capital was hedging against this exact situation in 2013, 9 years too early, all his predictions are now coming to fruition. Feel sorry for the English teacher/ALT types...soon maybe providing English lessons in the park for an onigiri to suppliment their income.. Get out while you can.

8 ( +8 / -0 )

Back in the 1970's the Yen was somewhere around 300 to the USD - hopefully it won't go there, but... you never know for sure.

0 ( +3 / -3 )

There's a lot of talk about forthcoming inflation within various online Japanese chatrooms - some people are even suggesting hoarding goods which may be used to barter with in the future - something as simple as Pasta or Toilet paper! Makes me think back to the pre-COVID times when the Shelves in the shops went bare.

2 ( +5 / -3 )

You don’t have to be an economic expert to understand that central banks are an evil foisted on the world to enrich the ruling class (yes, so-called democracies are no different than China, Russia, etc., all having a ruling class with just an illusion of democracy) by creating fiat, valueless currencies.

3 ( +7 / -4 )

What this means is that BOJ and the government that doesn't sack them think that Japanese workers are still paid too much in real terms. They'll bring that down, which will increase profits from exports and put more money in the pockets of the owner class. That's the entire game here.

2 ( +4 / -2 )

The world is addicted to the yen carry trade. The next round of rate increases in the US will drive the yen down even more and should be enough to get rates rising a little in Japan.

2 ( +3 / -1 )

Lot of people angry in the comments.

I'm here to tell you it's not much better overseas - in Canada it's currently impossible to live on minimum wage in most cities in the nation. A huge percentage of Canadian citizens are below the poverty line, and a much higher percentage of "foreign students" are relegated to living in boarding houses bought by people that arrived here earlier than they did because average rental room / apartment prices are over $2,000 per month across almost the entire country.

It could be a lot worse in Japan. Kuroda's keeping the ultralow rate because it was always Abe's goal to increase inflation, now you're finally seeing it too. Many nations around the world are experiencing severe inflation, and governments seem to be downplaying the severity.

I really hope it does not continue so long that Japan ends up an economic mess like Canada has, it's extremely depressing to survive in Canada even at very high income levels. McDonalds for one person now costs over $17 including taxes here, dinner for two at a decent restaurant over $150. Tipping at restaurants is also out of control with the average default tip requested being 18-22% and tipping has started to become common even at fast food restaurants. The world's gone mad.

-1 ( +4 / -5 )

This means the FED and US Treasury said no to helping Japan from evading an economic collapse. Japan can't sell US treasury assets.

-3 ( +4 / -7 )

Who is the yen for then, in this case? They don't want to rescue it

2 ( +4 / -2 )

Why blame the BOJ? Hiking wages is not its job. That's the job of private sector employers. If you folks are so unhappy about stagnant wages, why don't you blame the corporations, which have been raking in record-high profits in recent years?

The BOj's job is to achieve stable prices and employment. Both those respective figures are currently in the 2 to 3 percent range, which is pretty damned good considering all that's happening in the world.

-3 ( +1 / -4 )

Why blame the BOJ? Hiking wages is not its job.

Bank of Japan Governor Haruhiko Kuroda says that monetary easing is still needed for Japan to ensure wage growth

Kuroda and the LDP have repeatedly linked it.

They actually have no interest in doing it and collude with Keidanren to suppress wages.

More LDP, BOJ gaslighting to keep their QE, universal basic income for the rich.

4 ( +6 / -2 )

It’s ok in Japan if one doesn’t eat as prices of food are up 12-15%, depending on the item.

Increases in salaries are stagnant.

Those supermarkets haven’t raised their prices for their workers , have they?

Wait up!

My son who stacks shelves got a 2% raise a couple of months back-no steak dinner celebrations for him…

1 ( +4 / -3 )

There's something strange on this forum, where I assume many gaijin resides but yet shackled to yen like a slave.

I read elsewhere cashed up Japanese with assets in multiple currencies are buying up real estate in tourist destinations, expensive rate diamonds, gold bullions, because it's never been better for them.

Japanese have also re-taken from the Chinese (and Russian) the crown as patrons of luxury French hotels....

-2 ( +2 / -4 )

Japanese with assets in multiple currencies are buying up real estate in tourist destinations,

Over the years, my Japanese bank has been sending lots of promotions for buying foreign currencies. I wish I had heeded them. About 70% of my assets are US or Canadian dollar based, but nearly all of those are overseas.

2 ( +3 / -1 )

The ‘yen’ as a safe haven currency myth has been shattered.

3 ( +5 / -2 )

Like if he had a choice...

1 ( +1 / -0 )

The BOJ told the corporations that the interest rates would be kept low until they raised the wages to the employees. What’s the logic? It, in facts, lures the corporations to refuse wage raises in order to enjoy low interest rates, doesn’t it?

5 ( +5 / -0 )

Japan should sell some of their US treasuries and buy yen. They would at least get a good exchange rate that direction.

3 ( +4 / -1 )

@paradoxbox Canada does not have a housing crisis. Toronto and Vancouver might but that is certainly not the entire country. Possible to rent an entire 3 bedroom house in most of the country for $1500.

The problem in Canada is socialism. People are taxed to death and given crumbs back.

No, I am not saying society should not support the bottom 10% but a family of 4 with an income of $200,000 thinks they are getting a deal with $10/day care but in reality the increase in that family's taxes to pay all the bureaucrats to manage their lives for them is much more expensive than just paying our of pocket. They think they are well served by a government that takes $100 and gives them $65 back.

Housing is expensive in Toronto but it is not up to taxpayers to fix it. It is unjust to tax people in Saskatoon to pay the mortgage of somebody in Toronto. If those whiners don't like the cost of living in Toronto they can either suck it up, or move to Saskatoon, where housing is cheap, wages are the second highest in the country after Alberta and the quality of life is superior to Toronto.

That is the problem, Canadians want big brother government to solve their problems for them and tell them what to do.

0 ( +2 / -2 )

Lunacy, but he has no other choice. Only way Japan pays its current debts is to inflate them away. Can raise rates or even let the market determine them as that would destroy the budget.

1 ( +2 / -1 )


The Yen is a "Safe" bet, and with it's weakness, is a fantastic opportunity to buy into Japan - selectively.

The only problem is that the Government here, does not really understand it's own Country's potential, and is more interested in Self-Interest than that of it's Population. They are milking the population for their own gain, rather than investing in the future of Japan - a Country, that has great future Potential for all here, regardless of Nationality.

0 ( +0 / -0 )

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